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Deductions & credits
trying to indicate that the pension fund is foreign on a 1099-R. turbotax automatically treats the pension as US income.
as a result, my foreign tax credit is reduced as it is calculated using the IRS formula: foreign tax credit= foreign sourced income/[US source income + foreign sourced income]xUS tax liability
all this means that there IS double taxation, because US source income is overstated, hence a coefficient <1 is applied, when it should be 1 as all income is foreign sourced
‎January 31, 2023
10:04 PM