I just want to understand where exactly one is expected to enter foreign income when doing taxes with TurboTax desktop. I will take simple example and would appreciate an answer.
I am resident of USA. I sell a property in India for profit of $10,000/- and I have interest income of $1000 in deposits in an Indian bank. I pay tax of $3000/- to Indian tax authorities.
Are the following steps right?
Please let me know.
Thanks.
Abhay
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Yes. You are correct on all counts. You would enter the sale of your residence as an investment sale.
For the interest income you would go to personal income>interest and dividends to report the interest income. Then visit the foreign tax credit and report $11000 as passive income under the gross income section. Be sure to report the full amount of foreign taxes paid when it asks for this information in the foreign tax interview.
Yes. You are correct on all counts. You would enter the sale of your residence as an investment sale.
For the interest income you would go to personal income>interest and dividends to report the interest income. Then visit the foreign tax credit and report $11000 as passive income under the gross income section. Be sure to report the full amount of foreign taxes paid when it asks for this information in the foreign tax interview.
Thanks a lot @DaveF1006!
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