Deductions & credits

To enter foreign interest income.

1. Log into Turbo Tax
2. Go to federal>wages and income>show more

3. Interest and Dividends>show more

4. Interest on 1099-INT

5. when it asks for a bank, indicate change how I enter my form.

6. Next screen enter you will type it in yourself.

7. Next you will arrive at a screen that says Let's get the info from your 1099-INT

8. Enter the name of the Bank or who paid you the foreign interest

9. If you paid foreign tax, check the box that says My form has info in other boxes (this is uncommon).

10. enter your foreign tax paid in box 6 of the form.

To claim a foreign tax credit for the amount of foreign tax you paid, go to:

1. Go to federal>deductions and credits>estimate and other taxes paid
2. Foreign taxes >start
3. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
4. 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. if you have more than one country, you will add that later.
5. Next screen is where you add the country your foreign income was earned in. 
6. 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.
7. 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

Lastly, yes you will need to report your foreign account over $10,000. You will report this on form 8938, which Turbo Tax supports. To report:

1. Type in 8938 in the search bar next to the magnifying glass toward the top of your return and select the Jump to link at the top of the search results.
2. On the Foreign Financial Assets screen, select Yes, I have foreign financial assets
3. Answer yes or no to living in a foreign country, and select Continue.
4. Answer yes or no to amount of foreign financial assets, and select Continue.
5. Carefully follow the instructions. If you need Form 8938, we'll fill it out for you.