Hello Turbotax community. I have declared my foreign earned income (gross income) and Tubotax said that i was eligible to exclude it. When I try to input the amount of taxes I paid in the Deductions and Credit section -->Estimates and other Taxes Paid --> Foreign Taxes, it does not give me the opportunity to input the taxes that I paid in the foreign country. A screen pops up that says "we'll checi if you are eligible for the foreign tax credit. I click continue then a screen pops up that say " Before we begin, do you have any more income left to enter?" I click on yes I am finished entering my income" then I click continue. Then the final screen pops up saying that "looks like the foreign tax credit doesnt apply this year" and by the reason it states:
You can only get the Foreign Tax Credit if you had foreign income and paid foreign taxes on that income.
Based on your answers to the previous questions, it doesn't look like you paid any foreign taxes. This means you aren't eligible for the Foreign Tax Credit this year."
I did pay taxes in the foreign country but it doesnt let me input them. Can anybody help? I am applying for scholarships in the US this year and I want to be able to show that my gross income was not what I received in the end in my bank account.
Any help would be much appreciated!
Thank you!
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If you are able to exclude all of your foreign income, then there is no U.S. tax on that income. Thus you were only taxed once by the foreign government.
thank you for replying. I am aware that there is 0$ left to tax after the foreign earned income exclusion, and that is why I do not qualify for the foreign earned tax deduction. However, because I do not qualify for the foreign earned tax deduction, Turbotax does not let me input the amount of taxes that I paid in the foreign country, and automatically assumes that I paid 0 $ foreign taxes which it writes in as $0 in the line reporting foreign taxes.
Can you help me with this? I want to report the amount of money I paid for taxes since in germany it is around 50% that goes into taxes. At the end of the day I do not have the gross income reported...
If you have filled out f1116, then open the Federal Information Worksheet . Scroll down to Part 6. The fifth paragraph is labeled “Foreign Tax Credit (Form 1116). Checkmark the box to file form 1116.
Then bring up the foreign tax credit comp. worksheet. Scroll down to the bottom to the carryover section and you should see the credit carried over to 2021.
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