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merle2934
New Member

II have investment in foreign country but have to pay tax there. The money is not coming into USA must so pay tax here on that money as well

I pay tax there.  Must I pay here as well on same money?
3 Replies
ToddL
New Member

II have investment in foreign country but have to pay tax there. The money is not coming into USA must so pay tax here on that money as well

If you are subject to U.S. income tax, foreign investment income is taxable on your U.S. return.

If you are paying foreign tax on that income, you may claim a credit against your U.S. for the amount paid to the foreign country.

See Foreign Tax Credit for additional information.

In addition, you may need to report additional information about foreign accounts in certain situations. If at any time during the year the total balance of all your foreign accounts was more than $10,000, you will need to complete FinCEN Form 114 (formerly Form TD F 90-22.1). If you held foreign financial assets worth more than $50,000 at any time during the year, you might also need to complete Form 8938. We'll help you with this.

meetvasu15
Level 1

II have investment in foreign country but have to pay tax there. The money is not coming into USA must so pay tax here on that money as well

1. Who and how do I contact someone at Turbo tax to help with my foreign investments?

2. I have investments that are classified as PFIC and a retirement account in a foreign country - can your CPAs help with that?

MarilynG
Expert Alumni

II have investment in foreign country but have to pay tax there. The money is not coming into USA must so pay tax here on that money as well

As a US citizen, you are required to report your world-wide income.  However, you may be able to exclude all or part of your foreign income and therefore would not be taxed on it.

 

If you do have to report your foreign income, you will get credit for Foreign Tax Paid on that income, so that you are not double-taxed on the same income.

 

Click the link for more detailed info on Foreign Tax Credit.

 

Here's how to get individualized help from a TurboTax Live Expert.  Since you have investments, you should probably use the Live Premier product. 

 

 

 

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