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Kelkafa
New Member

I paid income tax for rent received in Turkey. There is a US-Turkey no-double taxation treaty for income tax. How do I enter this in Turbotax for Tax Year 2024?

I inherited an apartment from my dad in Turkey which receives rent in 2023. I had to pay income tax to Turkey for 2023 rental income in 2024. Under the US-Turkey tax treaty, the property tax is non-refundable, which I deducted under the rental income tab in Turbotax. However, the income tax to Turkey is refundable in full which is better than a deduction. When I try to enter this into Turbotax, it only allows me to deduct the foreign income tax that happens to be on my 1099-DIV forms from some international ETF investments. However that is just a fraction of the larger credit here. I cannot even get Turbotax to allow me to enter any other foreign income tax. The instructions on Turbotax do not even correspond to the options that I am given on the data entry/question pages. I see some posts from 2023, but it seems Turbotax changed the layout and questions on the Foreign Income Credit page. Please help, how do I enter this foreign income tax in the 2024 Income Returns in Turbotax?
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1 Reply
ThomasM125
Expert Alumni

I paid income tax for rent received in Turkey. There is a US-Turkey no-double taxation treaty for income tax. How do I enter this in Turbotax for Tax Year 2024?

You need to go to the Estimates and Other Taxes paid section in the Deductions and Credits area of TurboTax, then choose Foreign Taxes to assign your foreign income to a country and enter the tax paid. Indicate that you have already entered your 1099 forms with foreign taxes paid. Choose the foreign tax credit option in place of the deduction. Choose the passive income option.  Assign a country for your income and report the foreign income amount. Later in the routine you will be asked to enter your foreign tax paid.

 

After you enter the country and income earned in that country, you will see a screen that says Foreign Taxes Paid - (name of country) and an option to enter the foreign taxes. 

 

 

You get a credit for foreign taxes to the extent of your US tax on the foreign income in the current year. The unused credit can be carried back or forward to benefit other years.

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