Foreign tax credit

[VicG2]

I just filed my 2023 income tax as an expat in Italy.  The taxes that I just paid do I amend my 2023 Federal Income tax to reflect the taxes paid to Italy in 2025 for 2023 or do I just reflect the taxes paid to Italy in my 2024 US tax return form 1116

[pk]

@VicG2  

(a) For US purposes, each  tax year stands on its own.

(b) When did you enter Italy ?  This is to establish  your tax home start date  ( assuming that you went directly from the US to Italy) ?  Need details of this.

(c) Are you working for ( and /or was working in 2023 ) for  a local entity or self-employed ?  Trying to distinguish between US sources paid income vs./ foreign sourced income.

(d) What did your 2023 federal income include ?  Trying to understand whether you had claimed foreign tax credit / Foreign Earned Income Exclusion or what ?

Please answer my questions  and I will circle back once I hear from you --yes ?

[VicG2]

Moved to Italy in 2023 from the US.  Not working in Italy, living off my US pension, social security, and investments.

I didn't know I had to pay taxes in Italy.  

[SusanY1]

You would take the tax credit for the taxes attributable to 2023 income (or "accrued") on an amended 2023 tax return.  This is one instance where you don't take them in the year actually paid, because you need to match them with the income.

Since you would be amending to take a credit, you do not need to submit the return if there is no benefit derived from doing so.  However, an additional refund for that year is not the only benefit you may see. You would also potentially have unused credits to carry forward as well, and it is likely worth amending to do so.  

If you prepared your 2023 tax return in TurboTax there is no fee to amend that return.  See How to Correct Federal Returns for more information on amending your tax return. 

[pk]

@VicG2  having gone through this thread again and agreeing with the comments of my colleague @SusanY1 ,  I am now even more confused as to what we are all talking about , So let me state my understanding of the situation:

(a) You a US person ( citizen/GreenCard)  moved to Italy in 2023  ( exact date here may be necessary ). You have established tax home  in Italy on xx/xx/xxxx.  Exact date here matters.

(b) Assuming that you are a resident of Italy and under the US-Italy tax treaty you may be liable  for  taxes on your world income.

(c)  We do not know the exact sources of your income -- you said US pensions , savings etc.  Need details here to understand which ones are taxable by Italy.  Note that this may mean that you have to resource these incomes for form 1116  ( foreign tax  credit)

(d) You said you are filing your 2023    -- is this your original or amended 

(d) you also said   did not know you had  to  file return in Italy   -- what do you actually mean.  Generally as a resident in Italy you are taxed on world income  (  my understanding )-- therefore  you  exact date and immigration/tax status in Italy is  important.

Could you please help here by providing the  requested info. and correct my  understanding as necessary .

pk