This is my first time filing taxes having moved abroad to the UK, and I am wondering if TurboTax is working correctly when it comes to applying the Foreign Tax Credit. I have minimal US-based income (<$200 from interest in bank accounts), and around $220k USD equivalent of foreign wages earned while in the UK. I have paid almost $90k of taxes to the UK government and so I had figured I would owe no US federal taxes. It seems to be general knowledge that paying taxes in a higher tax country would result in no tax liability. However, I still ended up with a ~$3k liability. I re-ran my taxes in a simplified scenario just to take out all extraneous variables to test this - and I still end up owing a tax liability in this scenario where my total income consisted solely of the $150k foreign UK wages (no dividends, investment accounts etc.), and me putting the $90k payment of Foreign taxes.
I am hoping I am missing something here.
