When you complete all of the foreign earned income exclusion screens, the software will keep track of the amount of foreign wages that were not excluded by the foreign earned income exclusion.
To input your foreign taxes, see the following steps:
Proceed to the foreign tax credit section of the return
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First screen say yes you paid foreign taxes
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Go through a couple of screens, Tell Us About Your Foreign Taxes say None of these apply - if they do not apply
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Click you want the credit
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Click through a couple screens and click the income category as General Category income
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Add your countryXXXX
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When you come to the screen Foreign Taxes Paid XXX. enter your taxes in the box for Other Income
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When you get to the screen, Reduction in Foreign Taxes, you must enter your foreign earned income exclusion in the first box and your total foreign earned income in the second box. You must reduce your foreign taxes as you cannot take a credit for the income that you have excluded. Explanation can be $50,000 * 90,302/ 287,499 = $15,705
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Country Summary - click Done
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Click through the screens to the end of the foreign tax credit section.
If you have passive FTC, you should enter your FTC for your wages first and then the passive income foreign tax.
Please let me know if you have questions.
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