Sorry, I meant IRS.
I am still not clear on what to choose in "Income Type". Is "Lump-Sum Distribution" correct ? As it is retirement lump-sum from the Japan company, it was not rolled over and just deposited into my Japan bank account.
My another question is that I didn't include the amount in my "Wage&Income" but add it in Form 1116 only. Do I actually need to add the income in my "Wage&Income" too ? I tried to add it in Less Common Income/Miscellaneous income/Other reportable income, but it increases my state tax as well, though this income was generated in Japan only. I thought it would increase federal tax and I could use foreign tax credit against it.
When I skip adding the income in "Wage&Income" but only add in form 1116 as lump-sump distribution, my tax has no change from when I did it without this foreign income at all. I tried it with "general category income" in form 1116, it gives a lot of foreign income credit that doesn't seem right. Any cases I explained here didn't get caught in smart check at all.
I hope my explanation makes sense. Please advise.
