DaveF1006
Expert Alumni

After you file

You will need to apply for a foreign tax credit for the foreign wages that you report to avoid being double-taxed.

 

  1. Go to Federal
  2. Deductions and credits 
  3. Estimate and other taxes paid 
  4. Foreign Tax Credit>start or revisit
  5. When it asks We just need to check if you have any uncommon situations indicate I paid foreign taxes on income I earned while working in another country. 
  6. At some point in the interview, it will ask if you wish to take a deduction or a credit. If you are able to itemize deductions, you may consider taking the deduction.
  7. There will be questions in the next screen asking you the description of the Foreign Taxes paid and the amount.
  8. If you find that this has no effect on your tax return, you may circle-back and choose you wish to take a credit.
  9. Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
  10. The first that you will be asked is what category of income is it, you will say general category income.
  11. Next screen will say Country Summary, select add a country 
  12. When it says Other Gross Income - XXXX, Here you put in the Gross Amount you earned in that country. 
  13. Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - XXXX, here is where you record the amount paid under Foreign Taxes.
  14. Finish out the section. 

You may need to repeat this process twice because you need to prepare separate worksheets for the two types of income, General Category Income for your wages and Passive Category income for your foreign interest income. 

 

 





 

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