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kutlulev
New Member

When I am stating my foreign income do I announce the income before I pay tax (to the foreign country) or the net income after tax?

When I am stating my foreign income do I announce the income before I pay tax (to the foreign country) or the net income after tax?

For example, say my before tax income in Turkey is $3500. But, I pay $1000 tax to Turkey. When I am reporting my foreign income to the US, should I say $3500 or $2500 for my foreign income?

Thanks


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Accepted Solutions
Leonard
Intuit Alumni

When I am stating my foreign income do I announce the income before I pay tax (to the foreign country) or the net income after tax?

You will report your gross income before any taxes were withheld.

In your example, you would report $3,500 as your income.

You may be eligible for a credit on the taxes you paid to the foreign country.

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1 Reply
Leonard
Intuit Alumni

When I am stating my foreign income do I announce the income before I pay tax (to the foreign country) or the net income after tax?

You will report your gross income before any taxes were withheld.

In your example, you would report $3,500 as your income.

You may be eligible for a credit on the taxes you paid to the foreign country.

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