You would need to know the amount of RSU included in your W-2 wages. After determining this amount, you will need to allocate the income by between foreign and US workdays between grant and vest. If 50% of your workdays during this time were in a foreign country, then 50% of your RSU income would be foreign source. US source income cannot be offset by foreign tax credits.
You would enter you W-2 as you normally would in TurboTax. Then you would go to Miscellaneous income to enter the amount of foreign source RSU income as a negative number on line 21, page 1 of your 1040.
Please follow the instructions below to report your foreign RSU income as a negative on line 21:
- Click Federal Taxes ->
Wages & Income and scroll down to Less Common Income
- Go to the last selection,
Miscellaneous Income and click Start
- Go to the last option,
Other reportable income and click Start
- When it asks, "Any
other reportable income?" say yes and then type in a description and
the amount to report it on your tax return (make sure this is a negative number)
The you need to go to the foreign tax credit section of TurboTax to enter the foreign income (amount that you entered as a negative on line 21) so that you may take credit for the foreign taxes you already paid.
To include the
amount of foreign taxes you paid, follow these steps for TTPremier:
- Open up your tax return in
TurboTax
- Select Federal Taxes
- Select Deductions and Credits
- Scroll down to the section
"Estimates and Other Taxes Paid"
- Select Foreign Taxes
- Follow through this section
to enter the foreign taxes paid
