Hi there,
I have been working in the US on a H1B work visa, unfortunately it expired (maxed out) in January 2022 so I returned to my home country of Singapore and continued working for my US company from there. I am in the middle of the employment-based green card process, so when I received my I-140 and could extend my H1B visa, I did so and returned to the US in October 2022.
What this meant was that I worked in Singapore from January to October 2022, and since it was for the US company, I was still taxed as a US resident alien. However I am paying Singapore taxes for the same US income, as Singapore tax is based on me being located in Singapore, regardless of income source.
How can I claim the amount I'm paying for Singapore taxes from the US taxes, since I am being double taxed for the same income?
Also, Singapore's tax filing date is also 4/15, and I'll likely pay the Singapore taxes after 4/15. How would that work in terms of filing taxes in the US - should I request an extension till October, and then claim the credit back after I've paid the Singapore taxes?
You'll need to sign in or create an account to connect with an expert.
You can get a credit for the taxes you paid to Singapore on your US tax return. Look in the Deductions and Credits section in TurboTax, then Estimates and Other Taxes Paid, then Foreign Taxes. The taxes paid or accured are deductible, so you wouldn't have had to pay the taxes in order to deduct them, you would just have to know the amount due even if you paid them later in the year. However, you need to make an election to accrue the taxes by making sure you have checked the appropriate box on Part II of Form 1116 Foreign Tax Credit. Once you make the choice to accrue the taxes, you must use the same method going forward. You can learn more here: Foreign Tax Credit
You can get a credit for the taxes you paid to Singapore on your US tax return. Look in the Deductions and Credits section in TurboTax, then Estimates and Other Taxes Paid, then Foreign Taxes. The taxes paid or accured are deductible, so you wouldn't have had to pay the taxes in order to deduct them, you would just have to know the amount due even if you paid them later in the year. However, you need to make an election to accrue the taxes by making sure you have checked the appropriate box on Part II of Form 1116 Foreign Tax Credit. Once you make the choice to accrue the taxes, you must use the same method going forward. You can learn more here: Foreign Tax Credit
Thank you so much for your quick response! I found the foreign tax credit section and will complete it accordingly, this really helps! 🙂
@joysyt , while generally agreeing with @ThomasM125 , I would like to add the following
(a) since the actual work was done in Singapore , for US tax purposes this is foreign income and therefore eligible for Foreign Earned income exclusion or foreign Tax Credit / Deduction. Your US employer was in error , treating you as local employee. However the good news out of that is 1. your normal federal taxes have been withheld at source, your FICA taxes have been withheld/paid.
(b) Since Singapore tax year is calendar year, the amount of tax due to Singapore as a resident was hopefully paid and if not then file the Singapore return first so you have a proper figure of the assessment. Then use this as the taxes paid to a foreign taxing authority.
(c) When completing form 1116 ( as described by @ThomasM125 ) declare the income while in Singapore as your foreign income and foreign taxes paid as paid. Note that while the foreign taxes paid is recognized dollar for dollar, actual amount allowable for the tax year is based on a foreign income to world income and thus can be a bit less than the actual amount of foreign taxes paid ( depending on the exact facts and circumstances ). The disallowed portion of the credit may be carried back or forward as long as there is foreign income in those years. Thus it tends to be , at best, asymptotic. You can also deduct the taxes ( like states taxes ) if you itemize but again you have SALT ( State And Local Taxes ) limit of 10KUS$.
(d) Note that if the final taxes paid to foreign taxation authority is different than what you claim on form 1040/ form m1116, then once the dust settles, you may have to file an amended return to IRS / State recognizing this.
(e) Note that Singapore does not have a totalization agreement with the USA and thus you may have to pay Social Security / Medicare equivalent taxes to both country.
Does the above make sense ? Is there more I can do for you ?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
babylayla2023
New Member
obeteta
New Member
Bob in Plano
Level 4
helloTT102
New Member
cathykazhome-cox
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.