Hello Marilyn,
This is useful. I have a follow-up question.
I have a foreign (private and company) pensions that is not taxed abroad (according to double tax treaty) as it should be taxed at federal level in the US but no state level in Illinois, where I live, and wonder how to report this. Following your instructions above, assuming these are the instructions for this situation.
Under 'Deductions & Credits' under 'Other taxes paid' under 'Foreign Tax Credit', it provides three choices:
1) 'I paid foreign taxes on income I earned while working in another country',
2) 'I have foreign tax credit carryover that I want to use' and
3) 'None of these apply'
Should one choose number 1 above? If so, on the next screen, should one choose credit or itemized deduction?
Rick
