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I want to claim foreign tax credit but after I entered an amount (say $50,000), the credit is shown as zero.

I did not claim foreign earned income and housing exclusion
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1 Reply
KarenJ
Intuit Alumni

I want to claim foreign tax credit but after I entered an amount (say $50,000), the credit is shown as zero.

Please see the following steps:

First input your W-2 if you received one.  If you did not receive a W-2 (or even if you did) you then need to go to  the foreign earned income section of TurboTax (even if you do not qualify for the foreign earned income exclusion). If you only received foreign wages, not on a W-2, enter them here.  If you are not taking the exclusion, after a number of screens you will see the following screen:  Would you like to try and exclude your foreign earned income?  Click No.

To report your foreign tax paid on your wages for foreign tax credit:

  1. Enter foreign tax credit in the search box at the top of the page and click the Jump to link
  2. Click 'Yes" you paid foreign taxes
  3. Click through the screens regarding foreign interest and dividends
  4. Click yes that you have reported all your foreign income already in TurboTax
  5. Click that you want to take a credit
  6. Answer question about the Simplified Limitation Election
  7. Choose income type for wages- it will be General category income
  8. Add XXX as the country
  9. Enter description -XXX wages
  10. Enter wage amount that you previously reported in TurboTax
  11. Enter your taxes you paid on your foreign income in the box "Other income"
  12. Continue through ALL the foreign tax credit screens until done.

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