Self employed

The foreign tax credit keeps you from paying tax to two countries on the same income- if the country is on good terms, on a list, with the US (no terrorists). Italy is one of them. There is a treaty between US -Italy that can exempt some income or change how it is treated. See United States Income Tax Treaties for other countries.

• You want to determine if you have any treaty exempt income. It is reported and then subtracted back out.
• You will pay tax to either US or Italy and then claim a foreign credit on the other return for double taxed income. Where do I enter the foreign tax credit (Form 1116) or deduction?
• You may qualify to exclude your wages under Foreign Earned Income exclusion. See Do I need to report foreign income? & What are Forms 2555 and 2555-EZ used for?

You can amend a tax return for up to 3 years.

• How do I amend my federal tax return for this year?
• I need to amend my state return