Self employed

You can claim a foreign tax credit for the taxes paid to the other countries. Here is how to enter.

1. Open (continue) your return in TurboTax
2. Enter all your foreign income in Wages & Income if you haven't already
3. Select Search, enter foreign tax credit and select Jump to foreign tax credit
   • Or go to Deductions & Credits, and select Start next to Foreign Tax Credit under Estimates and Other Taxes Paid. Continue through the screens until you get to step 4.
4. When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation. Take the Credit. 

• Continue until you reach a screen No other income or Expenses.  Say yes.
• Continue through the screens until you reach a screen that says choose the income type, select General Category income.
• When you reach the screen Country Summary, select Add a Country.  Here select Colombia.
• Answer the questions about your foreign income, taxes, and expenses on the following screens
• When finished, you'll be taken back to the Country Summary screen. If you have income from other countries to enter, select Add a Country. Here you will add Canada.
• Answer the questions on the following screens until you reach your Foreign Tax Credit Summary. If you’re finished with this section, select Done.

When the program asks you to enter other gross income, report the gross income from both countries when you get to that section to report the income. Do not enter the net profit or else you won't get the credit, since it was zero. As an FYI, entering the income information here does not get reported in your return. This is just a tool to calculate your foreign income amount so this is why you will not enter expenses and deductions here.

Also don't enter expenses or deductions in this section or else this will reduce the credit. You have already entered expenses when you prepared your Schedule C.

This is a brief overview on claiming the foreign tax credit.  if you have any additional questions, please reach back to us. We are here to help.