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I am a self-employed US citizen living permanently in Canada. Is there a version of Turbotax that works for both the Foreign Tax Credit and Self-employment tax?

Hello!

I am trying to figure out if there is a Turbotax option for my particular situation.  I am a US citizen living in Canada as a permanent resident.  My only income is from a variety of freelance sources (from things such as illustration, graphic design, and workshop facilitation).  I have already filed and paid my Canadian taxes, and am looking to file my US taxes (my income was less than 8,000 US this year, so I don't think filing is strictly necessary, but I assume it's still a good idea).  

Basically, I want to be able to fill out both Schedule SE (self employment tax) and Form 116 (foreign tax credit), and whatever other forms I need.  Does TurboTax self-employed do this?  If not, is there another option?

And one secondary question:  This isn't relevant for this year since, as stated above, I have already completed my Canadian taxes, but I would like to know for future if there is any sort of benefit to filing both US and Canadian taxes through Turbotax? As it is, I'm using a different service for my Canadian taxes, but would certainly switch to Turbotax if there is a good reason to?
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Level 1

I am a self-employed US citizen living permanently in Canada. Is there a version of Turbotax that works for both the Foreign Tax Credit and Self-employment tax?

Yes.  You have selected the correct product of TurboTax to report your self-employment income and to claim the Foreign Tax Credit.

You are required to file a return if your self-employment income is $400 or more.  You stated that it is approximately $8,000. You will need to complete a Form 1040 Schedule C or C-EZ to report your income and business related expenses. It is advised to report all your business expenses (no matter how minimal) to reduce your income because you may be subject to self-employment tax if your net income is $400 or more.

To begin entering your information in TurboTax do the following:

  • Type Schedule C in Search
  • Click the Jump to schedule c link or Go to Schedule C button
  • Begin navigating through the prompts to enter your income and expenses

To enter the Form 1116 to take the Foreign Tax Credit, type foreign taxes in Search, and click the Jump to foreign taxes link.

TurboTax objective is to ensure that you get the best tax benefits and deductions including any tax credits and treaty benefits that may be applicable to your situation.  There is also a Canadian version of TurboTax that you can access at https://turbotax.intuit.ca.

1 Reply
Level 1

I am a self-employed US citizen living permanently in Canada. Is there a version of Turbotax that works for both the Foreign Tax Credit and Self-employment tax?

Yes.  You have selected the correct product of TurboTax to report your self-employment income and to claim the Foreign Tax Credit.

You are required to file a return if your self-employment income is $400 or more.  You stated that it is approximately $8,000. You will need to complete a Form 1040 Schedule C or C-EZ to report your income and business related expenses. It is advised to report all your business expenses (no matter how minimal) to reduce your income because you may be subject to self-employment tax if your net income is $400 or more.

To begin entering your information in TurboTax do the following:

  • Type Schedule C in Search
  • Click the Jump to schedule c link or Go to Schedule C button
  • Begin navigating through the prompts to enter your income and expenses

To enter the Form 1116 to take the Foreign Tax Credit, type foreign taxes in Search, and click the Jump to foreign taxes link.

TurboTax objective is to ensure that you get the best tax benefits and deductions including any tax credits and treaty benefits that may be applicable to your situation.  There is also a Canadian version of TurboTax that you can access at https://turbotax.intuit.ca.