Hi,
I worked remotely in a foreign country for a US company in 2021 and earned a salary. In April 2022, I did the taxes in that foreign country and paid the tax bill. According to my understanding, this means that I accrued the tax in 2021 and paid it in 2022 and that this is for "General Income"
In addition, I have foreign tax credit from 1099s that were automatically entered as "Passive Income".
I would like to file form 1116 for the foreign tax credit. I cannot put in a paid date of "4/10/2022" because this date is past 12/31/2021 (blocked by the software). However, if I choose accrued I can put in the data 12/31/2021 and this works fine.
My problem is that then I have some foreign tax credit paid and some foreign tax credit accrued, which I believe is disallowed by the IRS. For some reason, turbotax does not block this.
In addition, the choice to accrue foreign taxes applies to all foreign taxes qualified for the credi...
Is the correct course of action here:
(1) Choose "accrued" 12/31/2021 for the general income and "paid" for the passive income.
(2) Wait until next year when I will be able to choose "paid 4/10/2022" for the general income.
If I choose "accrued", will this affect future filings also for the Passive Income FTC?
Thanks!
