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Foreign Tax Credit on Wisconsin 1NPR after moving overseas during the year

I moved overseas in September.  I have Wisconsin sourced income until I moved out of the country where I now work for a non-US company. I have successfully claimed the Foreign Tax Credit on my federal return using Form 1116.  When I fill out Wisconsin Part Year return, I can't find a way to factor in a foreign tax credit to offset the taxes I am paying in my foreign country on my earned income. It appears the Foreign Earned Income Exclusion will offset my state taxes next year, but I have not been overseas long enough to use it this year. Is there a way to have the Foreign Tax Credit flow to my state tax return?  Thanks in advance.

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3 Replies
SusanY1
Expert Alumni

Foreign Tax Credit on Wisconsin 1NPR after moving overseas during the year

There isn't a way to get a credit for the foreign taxes paid on your Wisconsin return.  They don't offer a tax credit for foreign taxes paid. 

 

However, you are able to file as a part-year return for Wisconsin that will allocate out the income not earned in the state.  You will do this by answering the questions in the Wisconsin-specific interview about dates that you resided in the state.

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Foreign Tax Credit on Wisconsin 1NPR after moving overseas during the year

Thank you for replying.  I filled out the interview questions but they seem to apply only to moves to another state to be able to allocate out income. I moved to another country, so I can't figure out whether my domicile remains Wisconsin even though I never plan to return, and maybe therefore I can't allocate out the income? Then I wonder if I file a part year 1NPR or a regular WI 1-form?  I have left the state and do not plan to return in the future to live there. So it is very confusing and no search has given me a definitive answer. Thanks again.

AmyC
Expert Alumni

Foreign Tax Credit on Wisconsin 1NPR after moving overseas during the year

No, if you have no intention of returning to WI, there is no reason to pay taxes there. A part year resident will file Form 1NPR - Nonresident and Part-year Resident Income Tax Return.

 

You want your tax forms to be correct and we have to work with a program designed for people moving around -usually- inside the US. Don't let the questions scare you. Go ahead and allocate your income between WI and not WI.

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