Foreign income and foreign income tax credit

I thought I would ask this, just to avoid mistakes, even though it seems rather obvious. When reporting foreign income, one has to put that on form 1040 (under wages/salaries) as "Foreign income" and when applying for FTC on Form 1116, the same amount has to be once again put in/reported as income along with the paid foreign taxes: is that correct? It would seems so, otherwise the FTC is not taken into account, but I just wanted to double check (first time with ftc and foreign income). I don't apply for foreign earned income exclusion (so there should not be a form 2555. Thanks!

231

Expert Alumni

Feb 19, 2021 5:30:51 AM

Yes - Your are correct. You enter the foreign income in the appropriate category in your return (usually wages/salaries) and then enter it again for the calculation of the foreign tax credit (just for calculation purposes). For additional information, see the following TurboTax Help article:

Where do I enter the foreign tax credit (Form 1116) or deduction for 2020?

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Foreign income and foreign income tax credit