As with the gentleman from Australia, when you retire and move to another country that country may tax your worldwide income even though you make no money in the country you reside.
I live in Spain under a non-lucrative visa (you can not work in Spain under this visa). I earn no money here in Spain, but Spain taxes my worldwide income (US income from investments in my case) at a higher rate than the US. This means I pay Spain several thousand dollars a year. This is worth it so far to live here, but I would like to be able to use the Spain taxes I pay to offset my US tax burden.
I found form 1116 in Turbo Tax, but it seems oriented to foreign income based taxes. Can I use Turbo Tax to deduct all or a portion of the Spain taxes I pay to offset my US taxes.
Hopefully this provides sufficient information to get an answer. I know many people who would like to know how to do this.
Thanks
