My wife and I have earnings from work for a Vietnam company in Vietnam. 20% was withheld for Vietnam taxes. How do I claim credit for the taxes paid?
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If you just want to utilize the foreign tax credit on your return, you should enter foreign tax credit in the search box at the top of the page and click on the Jump to link.
You will need to click continue through a number of screens about dividends until you get to a screen where you can check that you are going to enter general limitation income. Then add the country and the income from Vietnam. Then a few screens later you will enter the taxes paid or accrued in Vietnam. You enter them as Other income. You should do this for each of you.
You also may be eligible for the foreign earned income deduction.
o claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income, your tax home must be in a foreign country, and you must be one of the following:
A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
Review IRS Publication 54 Tax Guide for U.S. Citizens and Resident Aliens Abroad Chapter 4 - https://www.irs.gov/pub/irs-pdf/p54.pdf
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