@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
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.
@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
@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 ?