Daughter worked in Austria part of year (Taxed at 20% in Austria). Can this be deducted from income? She was abroad 4 months; earned less than $20K overseas?

[Vanessa A]

Possibly.

So to report your income and claim a deduction for your taxes paid, you can select the following:

• Federal
• Income
• Foreign Earned Income and Exclusion under Less Common Income
• When asked what forms was your income reported on, select A statement from my foreign employer
• Enter the income, hit continue 

After you enter the foreign income, you can then go to complete form 1116 to claim the foreign tax credit. To do this select the following:

• Deductions and Credits
• Foreign Taxes under Estimates and Other Taxes Paid
• Continue through answering the questions appropriately until you get to the "Do you want the deduction or the Credit"
  • If you are not itemizing your return, you will want to take the credit. 
• Continue through to claim your deduction or credit