I filled in foreign tax credit table 1116, but why it didnot go into my total tax due amount?

[gswu]

the total tax due remains the same say 50k, even after I filled in 60k foreign tax credit, is it correct? how should I deal with the situation.

[pk]

@gswu , cannot comment / help -- need lot more info.

(a) Are you US person ( Citizen/GreenCard/Resident for Tax purposes )?

(b)  Roughly what is your world income ( US sourced income Plus Foreign income ) and Foreign income ?  TurboTax uses this as a ratio to allocate  US taxes to the foreign source income 

(c) Which country is this income from ?  ( There must be a Tax Treaty in effect and also there may be  controlling clauses in addition to the double taxation clause ).

(d) What type of income -- Passive  such as  ( interest/dividend/ capital gain  etc. etc. ) or  HTKO or  active ( self-employment  etc. ) ?

(e) Is your Tax home in the USA or are you abroad  ( and if so which country ) ?

I will circle back once  hear from you 

[gswu]

Thanks pk(level 15) very much. (a) I have Greencard. (b)(c)(d)I have no US income. My 2024 income was about 200k salary, 250k dividend from China and 50k rent from UK. (e) I am aboard in China. Thanks again for your answer.

[pk]

@gswu , thank you for your responses.   

I am assuming that 

1. You are using Foreign Earned Income Exclusion ( FEIE -- form 2555 ) to exclude  the maximum allowed   wages to be excluded; 

 2.  Using one   form 1116  ( General category )  claiming  FTC on the unexcluded  wages. 

 3. You are using a second  form 1116  ( Passive Category )  claiming FTC  for Dividend + Rental foreign  income

Let me go back and refresh my memory on China Tax treaty and  come back a bit later 

Xie Xie

pk

[pk]

@gswu  continuing from my earlier post , I have simulated your situation i.e. (1)  FEIE +   (2)form 1116  ( general category ) covering   allocated foreign tax on un-excluded  Foreign Earned Income  of $106,500  ;(3)  form 1116 ( Passive Category ) covering  Rental income of 50K and Dividend income of 250K.  I can see the   FTC  on all categories and Turbo Ta behaving as it should.    However, none of this takes place  by itself i.e.  form 1116  general category  is not prompted for by TurboTax even though it knows that there is  "un-excluded " foreign earned income  that needs  FTC treatment. 

Therefore there is a lot of  running between Step-by-step and forms mode to make sure that the figures are correct.

Is there more i can do for you  ?