Deductions & credits

To apply for a credit for foreign taxes paid or accrued during the year:

1. From the Federal section of TurboTax, go to the Deductions and Credits section

2. Find Estimates and Other Taxes Paid

3. Choose Foreign Taxes

4. Indicate that you paid foreign taxes or have credits from prior years

5. Work through the section until you see an option to take a deduction or credit, the credit is usually better

6. Complete the rest of the section

On the screen that says Before we Begin, indicate that you have reported all foreign income and taxes paid on your 1099 forms to allow you to advance further:

On the screen that says Other Gross Income - Various enter the income earned by country:

On the screen that says Foreign Taxes Paid enter your foreign taxes paid:

 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.

You will only get a credit to the extent you have taxes on foreign income in the current year. Any unused credit can be carried back one year or forward ten years.