pk
Level 15
Level 15

Deductions & credits

@rsudol , assuming that you are a US person (citizen/ GreenCard ) and having a tax home in Brazil. incomes that are taxed by both US and Brazil  come under the "double taxes " amelioration  as follows :

 

(a)  for passive income  taxes  up to  USA$300 per filer  ( thus  US$600 for a joint filer  ) can be availed  of  ( as safe harbor ) without having to file a form 1116 -- just tell TurboTax  ( under Deductions and Credits tab ) that you have foreign taxes to recognize.

(b) if the amount of foreign taxes paid  is greater than the safe harbor amount above, then one can either  use  it as a deduction under  State & Local Taxes   ( SALT )  on schedule-A  but  herein SALT limitation applies 

(c) Or one can  use form 1116  to claim foreign tax credit ( under Passive  income )  but here while the full amount is recognized , the amount allowed  for the tax year  depends on a ratio  of Foreign income to World income.  The unallowed amount is carried  back for a year or forward till extinguished.

 

I hope I have answered your query  ( even though in a roundabout way .  Is there more I can do for you ?

 

pk

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