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Deductions & credits
You first have to enter your foreign income and then claim a credit for foreign taxes paid. You can't get a foreign tax credit in any year you don't report foreign income. You report the foreign income in the Foreign Earned Income section like you mention, unless you have reported it elsewhere. You don't have to apply for the foreign earned income exclusion when you use that section.
To enter your foreign earned income if you haven't enter it in another section of TurboTax, find the Foreign Earned Income and Exclusion section that you will find under Less Common Income in the Wages and Income section of TurboTax. On the screen that asks What Form(s) Was Foreign Income Reported on? answer A Statement from my foreign employer. You will be asked if you want to try to exclude the income, to which you should answer "no". You will be asked if you want to delete form 2555, to which you will answer "yes". The income will appear on your form 1040, line 1(h) as other earned income.
For the foreign tax credit, find Estimates and Other Taxes Paid in the Deductions and Credits section and choose Foreign Taxes. Work through that section and indicate that you want the credit as opposed to a deduction. Choose the "no" option on the page that says No Other Income or Expenses. Choose General Category income for the type of income. Choose the country you earned the income from and enter a description of the income and the amount earned. Enter the foreign taxes paid when instructed to do so. You probably don't need to enter much else on the rest of the screens but you can enter anything that you think applies to you. You will see your foreign tax credit listed on line 1 of Schedule 3 Additional Credits and Payments.
To view your form 1040 and schedule 1 to 3:
- Choose Tax Tools from your left menu bar in TurboTax Online
- Choose Tools
- Choose View Tax Summary
- See the Preview my 1040 option in the left menu bar and click on it
- Choose the Back option in the left menu bar when you are done
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