What a fiasco! TurboTax entered my foreign tax withholding 1040 on line 16 (Federal Income tax withheld from forms W-2 and 1099). This withheld income is from from foreign earned income from a foreign company that has no relation to the US any any US company. It's PURE foreign income. Now check this out..
I got a letter from the IRS that wanted the following because TurboTax listed my Foreign Withholding on line 16. Here's a quote form the letter:
"To support the amount of withholding on lines 16, form 1040, submit:
ARE YOU KIDDING ME! I never have had to do this for all the 11 years filing with TurboTax. I always get my refund.
I noticed that this year 2019, filing for tax year 2018 the IRS changed the 1040. The old, pre-tax year 2018, had a line 21, Other Income. List type and amount, where TurboTax correctly said: "Form 2555-Foreign Earned Inc along with the ( - ) minus number (my foreign withholding). Now with the new tax form for 2018 tax year, there's no line for "Other Income"
My guess is, since there is NO place to list my Foreign Withholding EXCEPT ON LINE 16, thus triggering the above letter from the IRS.
So, my question: Where should my Foreign Withholding be entered? If line 16, why do I get all those other forms from the IRS?
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Are you a US citizen/Resident (Green Card)? Are you abroad ( foreign tax home)? Do you have Foreign Earned Income eligible for exclusion? Did you fill out a form 2555? What country ( foreign tax home ) ? Are you still there or have you been repatriated ?
Generally there is no place for foreign taxes withheld -- there is one for foreign taxes paid ( 1099-B ).
So tell me more , yes ?
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