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apollog
Level 3

Foreign tax credit - Other gross income - country

In TurboTax 2020, when reporting foreign tax credit, I first choose income type. In my case "Passive income", then after adding a country, there is a screen asking me "Other gross income - [country name]".

The question is what it means "Other". Is it other to the "Passive income" I marked before or is it "Other" to forms 1099-INT, Form 2555, and Schedule K-1?

 

 

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Accepted Solutions
ThomasM125
Expert Alumni

Foreign tax credit - Other gross income - country

Yes, you do need to report the foreign income here even if you reported it elsewhere on the tax return. The only exception would be if the income was from a 1099-INT or similar investment income form or from a K-1 schedule that had been reported elsewhere.

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LinaJ2020
Expert Alumni

Foreign tax credit - Other gross income - country

It is asking if you have any other gross income that is NOT from Form 1099-INT, 1099-DIV, Form 2555 or Schedule K-1.  

 

If your passive income is from one of the abovementioned four tax forms and you have already entered them in the program, it will not be counted as your other gross income.  You will leave it blank.  

 

If your passive income is not from one of those four sources and you have not entered it anywhere in the program, you will enter here as other gross income.  

 

The purpose of this question is to avoid miscalculating or double-dipping the foreign tax credit on your tax return.

 

Hope it helps. 

 

 

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apollog
Level 3

Foreign tax credit - Other gross income - country

Thanks for the answer. But it raises another question.

 

My income was from a sale of an investment property. It was not reported on the above forms but I did report it in the rental properties and royalties section in Turbotax under Sale of property/depreciation. 

However, doing that did not make Turbotax recognize the foreign tax paid as credit. It will only count it as credit if I report it again under Foreign tax credit - Other gross income - country.

 

So, I am still in the dark on this.

 

Any insights?

 

Thanks.

 

LinaJ2020
Expert Alumni

Foreign tax credit - Other gross income - country

Where in the Rental section did you report the foreign tax paid?  

 

When you reported the Sale of Rental in the program, you should not have entered the foreign tax paid amount anywhere under the Rental.  You should enter the foreign tax under the Foreign Tax Credit section. 

 

 

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apollog
Level 3

Foreign tax credit - Other gross income - country

 

When reporting the payment of foreign tax, there is a section: "Other gross income - [country name]"

 

The question is about reporting the capital gain from selling the rental property in this (above) section after it was already reported as income in the rental properties and royalties section.

 

LinaJ2020
Expert Alumni

Foreign tax credit - Other gross income - country

Since this is not from any source of Form 1099-INT, Form 1099-DIV or Schedule K-1, you would need to re-enter the foreign tax paid on rental again on this screen.  See image

 

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apollog
Level 3

Foreign tax credit - Other gross income - country

Thanks Linda.

 

The question is not about where to report the tax that was paid. It is about reporting the income on which it was paid.

 

I report it once in the income section where you report income from rental property (in this case a capital gain from sale of a rental property).

 

Then in the section where you report foreign tax paid there is a question:

"Other gross income - [country name]"

So, it was not reported on 1099 and not on Schedule K1 but was reported before as I mentioned above.

 

And the question is if I need to report the income (not the tax paid on it) under this question "Other gross income - [country name]".

 

Thanks.

 

 

ThomasM125
Expert Alumni

Foreign tax credit - Other gross income - country

Yes, you do need to report the foreign income here even if you reported it elsewhere on the tax return. The only exception would be if the income was from a 1099-INT or similar investment income form or from a K-1 schedule that had been reported elsewhere.

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