Which box do I enter withholding and P&W deductions from Canadian gross income (as a US Citizen) on form 1116?

[captnjaq]

This is driving me crazy. I can't figure out how to get credit for nearly $8,000 in withholding and P&W deductions from one job I worked in Canada as a US citizen. The Canadian payroll company STILL has not sent forms, but I'm hoping to file my US taxes, regardless. I just can't figure out how to get credit for what was taken out of my gross income, my refund total has not budged after entering the info on form 1116 and Line 8b of 1040NR.

[DaveF1006]

It might be that you weren't able to claim the foreign tax paid this year and there may be a carryover into next year. If you can't claim a credit for the full amount of qualified foreign income taxes you paid or accrued in the year, you're allowed a carryback and/or carryover of the unused foreign income tax. You can carry back for one year and then carry forward for 10 years the unused foreign tax.

Look in your tax return and see if there is a 1116 worksheet, Look at the bottom of the sheet to see if there is a carryover amount listed in Federal Tax Credit Carryovers in 2020.

[captnjaq]

I THINK I have found the right box to enter, as the amounts automatically filled in on the carryover 2019 line.

I see the foreign tax total, an amount of less than 10% of it in the "Utilized" column, and the rest listed in Carryover to 2020.  Does this sound accurate?

I do hate to see it done this way, as I am being taxed twice on this income, it seems (at least this year). Unless the Canadian tax filing refunds me on a majority of the rest of that, I'm suffering at the worst economic time in my life. I know the credit is supposed to be far better than writing it off as an expense, but if it stretches out the savings for ten years, that's just nuts.

Thanks for your help!

[KarenJ2]

I assume you entered your foreign wages in the foreign earned income exclusion section of TurboTax.  Foreign income needs to be entered here even if you do not qualify for the exclusion.  Also in the foreign tax credit section, wages are considered general limitation income.  

Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources. 

To determine the limit, you must separate your foreign source income into categories.  The limit treats all foreign income and expenses in each separate category as a single unit and limits the credit to the U.S. income tax on the taxable income in that category from all sources outside the United States.