You will need to also enter your foreign rental income in the foreign tax credit section of TurboTax. You only need to enter the gross rental income for Form 1116, not the expenses. Please see the following steps:
To report your foreign taxes paid on wages (or other
foreign income) for foreign tax credit:
- Click on Deductions &
Credits
- Scroll down to Estimates and
Other Taxes Paid
- Scroll down to Foreign Taxes
- Click 'Yes" you paid
foreign taxes
- Click through the screens
regarding foreign interest and dividends
- Click yes that you have
reported all your foreign income already in TurboTax
- Click that you want to take a
credit
- Answer question about the
Simplified Limitation Election
- Choose income type for wages
- it will be General category income(pension income is also General
category, stocks and foreign rentals are Passive category)
- Add your foreign country as
the country
- Enter description - for
example Foreign wages
- Enter Income amount that you
previously reported in TurboTax- Enter gross rental income
- Enter rental expense totals as Definitely Related Expenses
- Enter your taxes you paid on
your foreign rental in the box "Other income"
-
Continue through ALL the foreign tax credit screens
until done.
