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How to reflect foreign tax credit for foreign tax paid on foreign income reported in W2 correctly?

I have worked outside the U.S. for the entire year of 2020. However, the income was reported in a W2 from my company in the US. I reported the foreign income in the W2 section in Turbotax. I want to claim Foreign Tax credit instead of the Foreign Income exclusion. Right now, I forced Turbo tax to think that I don't qualify the Foreign Income exclusion (I purposely fail the bona fide residence test so that the system will delete 2555 form for me). My question is...  I have entered foreign tax paid of 3k in the Foreign Tax credit section; however, it says right now that the entire 3k is excess amount and will be carry forward to be used for the future period. What do I need to do so that it will show some amount as the Foreign Tax credit? I don't think I should add foreign income again in the Foreign Tax Credit section as it will double my income. Any help will be greatly appreciated. 

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Accepted Solutions

How to reflect foreign tax credit for foreign tax paid on foreign income reported in W2 correctly?

Revisit the foreign tax credit interview.  When you arrive at the screen "Other gross income-country", insert the income even though reported elsewhere.  It will not double count.

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1 Reply

How to reflect foreign tax credit for foreign tax paid on foreign income reported in W2 correctly?

Revisit the foreign tax credit interview.  When you arrive at the screen "Other gross income-country", insert the income even though reported elsewhere.  It will not double count.

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