I'm a dual citizen (Canada / US) living in Canada but performing consulting to the US. I received a 1099-NEC that included nonemployee compensation. Taxes were not withheld. Because I live in Canada, I withheld taxes to Canada based on the nonemployee compensation amount. How do I include the taxes withheld to Canada in my US Tax return. I stated I have a 1099-NEC but when I jumped to "Foreign Tax Credits" and take the "Credit", I entered "Canada" as my Country of Residence, "12/31/2020" as date of Taxes Paid and foreign taxes as "Accrued". No carry overs from 2019. At this point it returns me to the "Your 2020 Deductions and Credits" splash page. No where does it ask for the Foreign Taxes paid. Am I missing something here or do I need to enter my foreign taxes elsewhere?
Revisit the interview. Here are the screen headers and responses. Screens 1 thru 5 may be slightly different on the on-line version, but starting at screen 6 they should be the same as the desktop version.
1. Foreign tax credit
2. Before we begin
3. Foreign taxes
4. Tell us about your foreign taxes
Check the applicable entry, then Continue.
5. Foreign taxes
6. Do you want a deduction or credit?
Take a credit
7. Reporting foreign taxes paid.
8. No other income or expenses
9. Completing forms 1116
10. Foreign tax credit worksheet
11. Choose the income type
12. Country summary.
Add a country.
13. Country Name
Select the country
14. Other gross income- country
Enter the amount even though reported elsewhere.
15. Definitely related expenses-country
Enter applicable data then Continue.
16. Foreign losses
Enter applicable amount then Continue
17. Foreign taxes paid –country
Enter the amount then Continue.
18. Country summary
Continue working through the remaining screens until finished.
Thanks for replying - much appreciated!
When entering the gross amount and foreign taxes paid, do you enter the US amount or do you convert to Canadian?