@janepencil If you choose to exclude the foreign income, you will not see Form 2555. This form will only appear in your return if you exclude foreign income. Your foreign income will then appear as wages in line 1 of your 1040.
Now, to claim the Foreign Tax credit:
- Open Turbo Tax
- Go to federal>deductions and credits>estimate and other taxes paid
- Foreign taxes >start
- Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified election
- Answer the questions in the next screens until you reach a screen that talks about income type. This will be the general category of income.
- Next screen is where you add the country your foreign income was earned in.
- Next screen will ask you what your source income earned in that country. Here you will allocate income earned while you were in that country.
- You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2020 or you won't get the foreign tax credit and will show up as an error in your return
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