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