I have a similar question on taxes for foreign capital gains. In my case, the foreign mutual fund sale has a tax withholding. I can enter that on Turbo Tax screen where the sale of the mutual fund is recorded. I assume that Turbo Tax will handle it and it will factor in to form 1116. I will try it when I file for 2020. The issue is that withholding information for 2019 was not available when I filed 2019 taxes. Once it was available I had to file taxes in the foreign country and since I did not have earned income, I got some of the withholding back as refund in 2020. I see this cycle repeating every year.
Assuming that Turbo Tax handles the withholding in year X and I get a foreign tax refund in year X+1, how to account for it in my tax filing. Can I show the tax refund as Other income in year X+1?
Appreciate on any guidance on this topic.
