topic Money Earned and Tax Paid outside the U.S. in Self employed

Money Earned and Tax Paid outside the U.S.

TLAU — Tue, 10 Mar 2026 05:42:28 GMT

I'm a resident of the U.S. but I earn song royalties that are paid in AUD to my Australian account. Taxes are taken out first. How do I account for this income and taxes paid when I lodge my U.S. tax return? Should I put in a separate tax return in Australia as well as the U.S.?

Re: Money Earned and Tax Paid outside the U.S.

NancyM5 — Wed, 31 Aug 2022 22:09:03 GMT

Residents of the U.S. are required to report all world-wide income on their tax returns. Therefore, your royalty income is entered on Schedule E of your 1040. The taxes you pay in Australia on this same income can be include on Form 1116 - Foreign Tax Credit. This article goes into detail about the foreign tax credit: Claiming the Foreign Tax Credit with Form 1116

TurboTax deals with U.S. income taxes, not Australian, and therefore, I'm unable to answer your last question.

Re: Money Earned and Tax Paid outside the U.S.

TLAU — Wed, 31 Aug 2022 22:23:05 GMT

Thank you so much for your response. That's really helpful.