SusanY1
Expert Alumni

After you file

You still report the foreign salaries in the section of TurboTax for "Foreign Earned Income and Exclusion."  However, this time when TurboTax asks if you would like to try to exclude the income answer No.  

 

You will then enter the foreign taxes paid in the Deductions & Credits section under Estimates, and Other Taxes Paid Foreign Taxes.

 

One note of caution:  if you also took the exclusion in 2017 for foreign earned income, removing the exclusion in 2018 will revoke the exclusion, and you will have to wait five years to take it again without permission from the IRS.  If 2018 was the first year that you took the exclusion and you amend the return to remove it, you will not have the same issue.  Permission from the IRS requires a Private Letter Ruling, which has a filing fee of $2,000.

 

If the tax credit works better for you, this is not a problem, of course. When you pay taxes on your income overseas, the tax credit is often the better way to go, though, and you can choose the option that provides you the better result. 

 

 

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