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Regarding foreign earned income on Form 1040 and gross income & foreign tax paid on Form 1116

Sure, it was income earned in Canada. Also, I didn't "move back" to Canada, we've always lived in the US (US citizens) and last year in Sept 2024 we moved to Canada (company transferred me to their Canadian entity) on a work permit and since then I've been earning Canadian income in Canada on a T-4 (no US income since then). So I believe my Canadian income should be on line 1h of the 1040 and I'm claiming foreign earned income credit. When I entered foreign income (converted in USD), it shows up correctly on form 1116 and also reduces my total tax due on form 1040 by the Canadian tax paid. Shouldn't the software automatically populate the Canadian income on line 1h or somewhere under taxable gross income on the 1040? this is the issue. It is not doing that and I don't think entering it as self-employment income is accurate (concerned about the 1/2 SS & Medicare tax it might trigger). How do I make that Canadian income flow on 1h or on the 1040 under Total income from all sources correctly? 

SusanY1
Expert Alumni

Regarding foreign earned income on Form 1040 and gross income & foreign tax paid on Form 1116

To make the foreign earned income flow to the proper line, enter it in the Foreign Earned Income and Exclusion section of TurboTax - even though it seems like you're not yet eligible for the exclusion.  

You will have the chance to tell TurboTax that you do not wish to exclude the income this year in that section.  

You will find this section under Less Common Income.

 

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Regarding foreign earned income on Form 1040 and gross income & foreign tax paid on Form 1116

thank you so much Susan! after weeks of attempting it, this was the right answer. I almost filed an extension yesterday, but was able to file my return instead. Thank you again!

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