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Where the excess income (foreign income not FEIE) shows in Turbotax? I need to report foreign tax on this excess income (form 1116)

 
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3 Replies
pk
Level 15
Level 15

Where the excess income (foreign income not FEIE) shows in Turbotax? I need to report foreign tax on this excess income (form 1116)

@ali16  you report your total income ( from the income statement from your employer, including any housing assistance, cash assistance etc. etc. ), then when you fill out the form 2555 qualifying you for exclusion of the foreign income , it shows up as a negative number before your AGI is computed.  Then on 1116 when you report the  foreign taxes , you have to make sure that the foreign income is  computed correctly to get the benefit of the  foreign tax credit.  TubroTax will walk you through  the whole thing but you need to be able to  check and make sure that things are right.

Also note that  tax computation uses the  world income to set the marginal rate correctly and then deletes the  tax for the excluded amount and  a similar  thing happens for the tax credit for the non-excluded amount.

 

In my personal view, a desktop version s best for this kind of complicated  situations because  one gets access to the  actual forms and the underlying worksheets.   

Where the excess income (foreign income not FEIE) shows in Turbotax? I need to report foreign tax on this excess income (form 1116)

Thank you @pk 

Additional question: can I add a foreign income as a regular W2 although I didn't receive one?

Thanks for your tip - next year I'll use the desktop version

Where the excess income (foreign income not FEIE) shows in Turbotax? I need to report foreign tax on this excess income (form 1116)

I don't know how to contact turbotax about this - when an excess income exists, Foreign tax credit on "Deduction & Credits" do not detect I have income subject to foreign tax.. This should be corrected in future or the current version.

How to contact Turbotax about this issue? 

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