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janepencil
Level 2

How to claim a foreign tax credit, but not "foreign income exclusion"? (married joint filing)

We are doing a married joint filing, I am working in U.S, my wife is working in a foreign country.

Is there a way that we do NOT claim the "foreign income exclusion", but still get form 2555 filled

in TurboTax?

 

Here is what we got:

Search for "foreign income" -> "Jump to foreign income" -> Fill out the wage amounts -> "Whose Foreign Income Would You Like to Try and Exclude?

 

If we choose my wife and pass the presence test, then we will have to claim the foreign income exclusion. If we choose "none of us", then we cannot even get form 2555 and input the foreign income.

 

Put it in short words, we just want to find a way to make sure the form 2555 line 37 to be zero.

 

Thanks a lot!

1 Best answer

Accepted Solutions
SusanY1
Employee Tax Expert

How to claim a foreign tax credit, but not "foreign income exclusion"? (married joint filing)

If using TurboTax online, you will need to enter your foreign wages as "other miscellaneous income".

 

To do this follow these steps:

  • Click on Wages & Income 
  • Click on Show more beside Less Common Income
  • Click on Start (or Revisit) for Miscellaneous Income, 1099-A, 1099-C
  • Answer yes to the first question and then provide a description such as "Foreign Wages" and the amount of total foreign income here.  If you and your spouse both had income from a foreign employer, enter the combined total here. 

After you have entered the income here, to be reported as income on your tax return, follow these steps to enter the taxes paid:

  1. Click on Deductions & Credits (either in the center of the program or across the top)
  2. Click on Show more beside Estimates and other Taxes Paid
  3. Click on Start beside Foreign Taxes.
  4. Follow the prompts.  Be sure to enter the same income amount here - here the income amount is just used in the credit computation but does not get entered as income on your actual tax return.
  5. Note that your taxes paid on your foreign wages are General Category Income.

 

 

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3 Replies
janepencil
Level 2

How to claim a foreign tax credit, but not "foreign income exclusion"? (married joint filing)

Sorry, I think my real question is, how to get form 1116 without form 2555.

SusanY1
Employee Tax Expert

How to claim a foreign tax credit, but not "foreign income exclusion"? (married joint filing)

If using TurboTax online, you will need to enter your foreign wages as "other miscellaneous income".

 

To do this follow these steps:

  • Click on Wages & Income 
  • Click on Show more beside Less Common Income
  • Click on Start (or Revisit) for Miscellaneous Income, 1099-A, 1099-C
  • Answer yes to the first question and then provide a description such as "Foreign Wages" and the amount of total foreign income here.  If you and your spouse both had income from a foreign employer, enter the combined total here. 

After you have entered the income here, to be reported as income on your tax return, follow these steps to enter the taxes paid:

  1. Click on Deductions & Credits (either in the center of the program or across the top)
  2. Click on Show more beside Estimates and other Taxes Paid
  3. Click on Start beside Foreign Taxes.
  4. Follow the prompts.  Be sure to enter the same income amount here - here the income amount is just used in the credit computation but does not get entered as income on your actual tax return.
  5. Note that your taxes paid on your foreign wages are General Category Income.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

janepencil
Level 2

How to claim a foreign tax credit, but not "foreign income exclusion"? (married joint filing)

Got it! So we need to claim foreign income and tax credit separately. 

Thank you very much!

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