If you have paid taxes on your interest income to both the US and foreign government, you may qualify for a foreign tax credit. Besides filing a Form 8938 and Schedule B, to claim this credit, you would need to file a Form 1116. Here are the steps:
- Open up your TurboTax account and select Pick up where you left off
- At the right upper corner, in the search box, type in "foreign tax credit" and Enter
- Select Jump to foreign tax credit
- Follow prompts
If you can't claim a credit for the full amount of qualified foreign income taxes you paid or accrued in the year, you're allowed a carryback and/or carryover of the unused foreign income tax, except that no carryback or carryover is allowed for foreign tax on income included under section 951A. You can carry back for one year and then carry forward for 10 years the unused foreign tax. To read more, click here:
https://www.irs.gov/taxtopics/tc856
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