DianeC958
Expert Alumni

Deductions & credits

The United States taxes world wide income.   So you report all of your income from the United States and foreign countries on your United States Income Tax.  Any foreign income you have earned and paid tax to a foreign country on that income is then reported on form 1116 and you receive a credit for the tax paid to the foreign country for any income tax you would owe to the United States.

 

Since your 403, 408, rental income and Social Security income are from the United States none of this income belongs on form 1116 since it is all United States Income.

 

If you are considered a resident of the Netherlands they also tax worldwide income and may have a similar form to give you a credit for income tax you pay to the United States on the income.

 

For the United States it does not matter who taxes the income first or second it is a matter of you receive a credit for taxes you pay to another country against what you owe to the United States for that same income.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"