Hello, I have a situation that I am not sure how to properly enter in TT.
I moved to a foreign country in 2022 (company transfer), and the company bonus paid in 2023 was split between US and my new residency country. Despite of that, US payslip has 2 entries for the bonus, one part for US time that has SS contributions and other withholdings, and the foreign part that only has Federal income withholding. On the other hand my foreign payslip has an entry in EUR for the bonus part that was actually paid to me where I live now .
Since my W2 includes all the income, and to avoid double taxation on that specific amount, I was reducing my foreign income reported by the amount of EUR that were reported in the foreign payslip. Is this the correct way?
Also, currency conversions don't align, the country I reside uses the end of the year rate, while for US I need to use annual average, so there might be some discrepancies (using US bonus amount and taking FTC for actual EUR paid taxes). Any recommendation on this? Using the exact rate for every single transaction would be difficult since I also have many other entries to report which would make it not feasible.
Thanks
