foreign tax credit

[snickers123]

turbotax deluxe's input sheet asks for "income.
  is that net of income taxes paid to foreign country?

said differently, is that "net salary?"

if not, then where do we enter income taxes deducted on the foreign paycheck?

[KarenJ2]

You will need to input your gross wages before deductions in the foreign earned income exclusion section of TurboTax.  If you received a W-2 for your foreign wages, input it as you would any W-2.  

If all your foreign income is not excluded by the foreign earned income exclusion, then you need to enter your foreign tax.  In the search bar at the top of the page, enter foreign tax credit and click on Jump to.   The foreign tax credit section is where you will enter your foreign tax.  Your wages will be considered general limitation income.

[mistyal3]

How can I determine the limit on my Foreign Tax Credit

[DeanM15]

You can calculate your limit on the Foreign Tax Credit:

"Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources"

@mistyal3

[mistyal3]

Thanks -- that helps a lot. But I have a follow-up dumb question. Is my "taxable income" the same as my "gross income?"

[KarenJ2]

In general, taxable income is your income less and deductions allowed. I am not what section you are asking about.  Please let us know where it is asking for taxable income.

You will need to input your gross wages before deductions in the foreign earned income exclusion section of TurboTax.  If you received a W-2 for your foreign wages, input it as you would any W-2.  

If all your foreign income is not excluded by the foreign earned income exclusion, then you need to enter your foreign tax.  In the search bar at the top of the page, enter foreign tax credit and click on Jump to.   The foreign tax credit section is where you will enter your foreign tax.  Your wages will be considered general limitation income.