turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

lablue69
New Member

I earned $131000.00 in the UK and paid tax of $46,374.00 on it why am i paying more tax?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

I earned $131000.00 in the UK and paid tax of $46,374.00 on it why am i paying more tax?

Have you claimed the Foreign Tax credit for your UK taxes paid?  Both the credit for foreign taxes and the deduction for foreign taxes (if you choose it instead of the credit) are entered in the same place.

First of all, make sure you've entered all your foreign income.  Then, 

  1. From within your return, type foreign tax credit in the Search box in the upper right of your screen and select the Jump to link in the search results.
  2. Click Continue and follow the instructions.

In most cases, taking the credit works out better than the deduction. TurboTax helps you decide which one is best for you when you go through this interview.  You won't be able to take a credit or deduction for taxes paid on excluded foreign earned income or housing because excluded income and housing isn't taxed in the first place.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies