For 2016 my daughter has lived and worked 1/2 year in USA and 1/2 Year in Brazil. Taxes have been paid in both countries. How do I proceed? What forms are filed w/ us?

[MiriamF · Accepted solution]

If your daughter is a U.S. citizen or permanent resident (green card holder), she must report her world-wide income. She can claim a credit for any taxes paid to other countries.

If she is not a citizen or permanent resident, she will need to file form 1040NR if she lived in the U.S. fewer than 183 days. If she lived here 183 days or more, then she should file form 1040 to claim Foreign Tax Credit.

To claim a credit for foreign taxes paid, she will need to file Form 1116. To do this in TurboTax Windows:

1. Type "form 1116" in the Search box, then select Jump to Form 1116.
2. On the page headed Tell Us About Your Foreign Taxes, check None of these apply.
3. You will be given the choice of claiming a deduction or a credit. In general, a credit gives better results.
4. Continue working through the questions. you will have to complete a separate form 1116 for each category of income - wages, self employment, etc.

When you are finished, check forms 1116 and 1040 to make sure that the foreign tax credit is reporting correctly.