DaveF1006
Expert Alumni

Deductions & credits

There's a direct method to report this using SusanY1 example.

 

  1. As you prepare your Foreign Tax Credit section in your return, when it asks for gross income, record $63,500, which is the difference between $190,000 and $126,500.
  2. When it asks for foreign taxes paid, record $18,382.

This should accurately report the Foreign Tax Credit you are entitled to.

 

 

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