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Works overseas dual citizenship (Japan,USA). Live and work fulltime in Japan. Does the DIY filing handle foreign tax deduction and exclusion? No W2.

No income or bank account in the US. I have filed using the basic DIY method but havn't seen an area for foreign taxes paid. I know it wouldn't affect any taxes  as I would be well under the exclusion. Thinking it would affect Foreign tax credits ib the future.
Thank you
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3 Replies
ErnieS0
Expert Alumni

Works overseas dual citizenship (Japan,USA). Live and work fulltime in Japan. Does the DIY filing handle foreign tax deduction and exclusion? No W2.

Yes. You can report foreign income, exclude foreign earned income (Form 2555) and claim a Form Tax Credit (Form 1116) or deduction in TurboTax.

 

I. Foreign Earned Income and Exclusion

  1. Type foreign income in Search (magnifying glass) in the top right
  2. Select Jump to foreign income

For more help: Do I need to report foreign income? 

 

II. Foreign Tax Credit

  1. Type foreign tax credit in Search (magnifying glass) in the upper right corner
  2. Select Jump to foreign tax credit
  3. Complete the screens to claim either the credit or deduction

For more help: Where do I enter the foreign tax credit (Form 1116) or deduction?

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Works overseas dual citizenship (Japan,USA). Live and work fulltime in Japan. Does the DIY filing handle foreign tax deduction and exclusion? No W2.

Thank you. Ernie

pk
Level 15
Level 15

Works overseas dual citizenship (Japan,USA). Live and work fulltime in Japan. Does the DIY filing handle foreign tax deduction and exclusion? No W2.

@sarakzolner , agreeing with @ErnieS0 's excellent reply to your post, and adding the following:

(a) my personal pref. fro such types of returns is CD/Download  Home & Business -- windows because  it keeps all the data on my machine, allows me to see the forms as filled out and I can amend the return ( if and when needed )

(b) Recognize that US does not recognize  dual citizenship  i.e. as a US citizen you will not be able to assert US-Japan treaty benefits , even though you work / reside in Japan ( resident / citizen of Japan )

(c) Physical Presence  test  is generally the best way to proceed  --- does not require permission/ approval of IRS as long as you meet the requirements of Physical Presence Test

(d) Strongly suggest familiarity with Pub. 54  ---> https://www.irs.gov/pub/irs-pdf/p54.pdf

(e) US & Japan have "Totalization agreement"  in place  -- re: Social Security -- please be aware of this  ----   https://www.ssa.gov/international/Agreement_Pamphlets/japan.htm

 

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