Both the credit and the deduction are entered in the same place.
After entering all your foreign income, here's what you do:
- Open your return.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
- Do a search for foreign tax credit and then click the "Jump to" link in the search results.
- Click Continue and carefully follow the onscreen instructions.
In most cases, taking the credit works out better than the deduction. We'll help you decide which one's best for you when you go through the foreign tax screens.
If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.
Note: You won't be able to take a credit or deduction for taxes paid (or accrued) on excluded foreign earned income or housing. This is because excluded income and housing isn't taxed in the first place.
Again, it's capital gains tax on foreign *stocks* (not salary or property) I'm asking about. I reported that on TurboTax under "Stocks, Mutual Funds, Bonds, Other". I tried reporting them under "Foreign Earned Income and Exclusion" but none of the forms fits and so I get to the message "No Foreign Income Has Been Entered". What am I doing wrong? @Critter#2