Retirement tax questions

Where did you see the reference to FEDIQ and where does the $1,300 appear?

Since you worked in a foreign country last year, there are two tax benefits you may be able to take advantage of:

• Foreign earned income exclusion
• Foreign tax credit

Foreign earned income exclusion

If you have foreign income you can, if you meet the requirements, exclude up to $100,800 in foreign earnings from your taxable income. To enter foreign earned income in TurboTax, please follow these steps:

1. Click on Federal > Wages & Income   
2. In the Less Common Income section , click on the Start/Update box next to Foreign Earned Income and Exclusion.  
3. On the next screen, Did You Make Any Money Outside the United States? mark the Yes button and click Continue.  
4. On the screen, What Form(s) Was Foreign Income Reported On? mark the appropriate box and click Continue.  
5. Enter your foreign earned wages on the next screen.
6. Continue through the screens, entering the requested information, to qualify for the foreign earned income exclusion.

Foreign tax credit

If you are unable to exclude your wages but have paid foreign taxes on the income, you can claim either a deduction or a credit for the foreign taxes you paid:

1. Click on Federal > Deductions & Credits
   
2. Scroll down to the Estimates and Other Taxes Paid section.
3. Click on the box next to Foreign Taxes.  
4. On the Foreign Tax Credit screen, click on the Yes box.
5. Enter the information requested on the screens. 

NOTE:  You cannot claim a credit for foreign taxes paid on the same amount of foreign income that was excluded on your return.

[Edited | 3/18/2020 |  11:56 am PDT]