I just want to understand where exactly one is expected to enter foreign income when doing taxes with TurboTax desktop. I will take simple example and would appreciate an answer.
I am resident of USA. I sell a property in India for profit of $10,000/- and I have interest income of $1000 in deposits in an Indian bank. I pay tax of $3000/- to Indian tax authorities.
Are the following steps right?
- I enter my income of $10,000/- + $1000/- in Personal Income just like I enter my other USA income.
- Then I visit foreign tax credit where I report:
- Passive income of $11,000/- (This is already part of my total income.)
- Foreign tax paid $1000/-
Please let me know.
Thanks.
Abhay
