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Deductions & credits
In the Turbotax program, you will enter the entire gross foreign income starting with the Foreign Income section, then continue to the Foreign Income Tax Credit section to enter the un-excluded amount, the program will calculate the corrected excludable and taxable amount on the Form 2555, Form 1116 and Form 1040 based on the information you provide.
To enter foreign earned income / exclusion in TurboTax online program:
1. After sign into your account, select Take me to my return
2. At the right upper corner, in the search box, type in foreign income and Enter
3. Select Jump to foreign income
4. Next screen, Did You Make Any Money Outside the United States? answer Yes
5. On screen, What Form(s) Was Foreign Income Reported On ? make your selection and follow prompts
To enter rest of the un-excluded amount under on a Form 1116 Foreign Tax Credit, here are the steps:
1. At the right upper corner, in the search box, type in foreign tax credit and Enter
2. Select the 1st choice on the search results - Jump to foreign tax credit
3. Start with screen Foreign Taxes and select Continue to follow prompts.
4. On the screen, Choose the Income Type, select General category Income
5. Next screen, select your country and follow prompts
6. Please see attached screenshots of the following steps