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senaberra
New Member

"Did you pay foreign taxes or have a foreign tax credit carryover?" I paid taxes when I was working as a foreign person and I have a Bank of America. What should I say?

 
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2 Replies
ThomasM125
Expert Alumni

"Did you pay foreign taxes or have a foreign tax credit carryover?" I paid taxes when I was working as a foreign person and I have a Bank of America. What should I say?

Foreign tax would be a tax on foreign income your earned. So, if you earned income from a foreign country and you paid a tax to that country on that income, that would be a foreign tax. A foreign tax credit carryforward would come from a foreign tax you paid in a previous year which you reported in a previous year on your tax return. If you were unable to use the associated credit in a previous year you can carry it forward to futures years. So, your current year foreign tax credit carryforward would be the portion of the previous year unallowed foreign tax credit carried over to this year.

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pk
Level 15
Level 15

"Did you pay foreign taxes or have a foreign tax credit carryover?" I paid taxes when I was working as a foreign person and I have a Bank of America. What should I say?

@senaberra , agreeing with my colleague @ThomasM125 's excellent reply I would just like to add one little item:  for foreign income and taxes to be considered for US tax purposes,  you also have to be a US person (  citizen/ GreenCard/ Resident for Tax purposes ) i.e.  income earned  by a US person while living in a foreign  country.

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