@JP1121
(a) TurboTax does support form 1116 --- you just have to use the correct version. While I do not know much about the "free" version, I suspect it does not support advanced features like foreign tax credit.
(b) Per US-Japan Tax Treaty, US Social Security received by a resident of Japan, is taxable ONLY by Japan. So when you file your US return, you recognize the SSA payment per SSA-1099 ( note--- there is no Medicare deduction, if you inform Social Security that you are permanently living abroad, assuming that is your decision ). Then under other income , "other" category you enter a negative amount equal to US taxable portion of Social Security benefit, with a memo --- Per US-Japan tax treaty article 17, para 1.
See here --
ARTICLE 17
1. Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration, including social security payments, beneficially owned by a resident of a Contracting State shall be taxable only in that Contracting State.
Technical Explanation of the current 2003 treaty ----
Paragraph 1 also provides for exclusive residence-country taxation of social security
benefits. Like the prior Convention, but unlike the U.S. Model, the Convention provides that
social security payments made by one of the Contracting States to a resident of the other
Contracting State will be taxable only in the other Contracting State. This provision applies to
social security beneficiaries, whether they have contributed to the system as private-sector or
government employees. The provision is intended to include United States Tier 1 Railroad
Retirement benefits.
I have highlighted the areas of import.
Is there more I can do for you ?
