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renda0709
New Member

Does anyone know what is a foreign tax credit, and why is TT asking me to do a complex return when I only have W2 income from the USA?

 
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1 Reply
pk
Level 15
Level 15

Does anyone know what is a foreign tax credit, and why is TT asking me to do a complex return when I only have W2 income from the USA?

@renda0709  assuming that you are a US person ( citizen/ GreenCard/Resident for Tax Purposes ), and if you only have W-2 income,  I am confused why the question about ?  Or perhaps you had  foreign income last year ( tax year 2022 ) ?

 However, to answer your question --- Foreign tax  credit  is for the purpose  of reducing the tax burden  when you have the same income being taxed by the USA and a Foreign Taxing authority.  This way you reduce the bite of double taxation.

 

Don't know how to help without some more info.

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