First of all, answer this question None of these Apply because you have entered your income already in your Schedule C form. Now to finish the rest of the section.
- Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
- The first that you will be asked is what category of income is it, you will say General Category income.
- Next screen will say Country Summary, select add a country and then select China.
- When it says Other Gross Income - China. Here list the income you received from the client.
- Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - China, here is where you record the amount paid under Foreign Taxes
- You should be able to continue through the sections until you finish. Do not enter deductions or anything else the program asks because if you answer these questions, this will reduce your foreign tax credit and defeat the purpose to receive the credit.
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