While working overseas, I resigned and had to pay one month's salary since I chose not to serve the notice period.
Where should I enter this payment in TurboTax?
You'll need to sign in or create an account to connect with an expert.
@Raj1 , based on your answers to my questions ,
(a) Assuming that you meet the Foreign Earned Income Exclusion (i.e. meet the Physical Presence Test -- 330 days abroad in a test period of continuous 12 months ), the amount you paid back to your employer during 2023 needs to be recognized ( i.e. by reducing your foreign earned income by the amount paid back) in 2023.
(b) If on the other hand, the amount paid back occurred in 2024, then you need to account for this in your 2024 filing ( during 2025 filing season ).
Note that Singapore does not have a tax treaty with the USA. Thus Foreign Tax Credit is not an option. However, Foreign Earned Income Exclusion is still available to you.
Does this make sense ? Is there more I can do for you ?
@Raj1 , Namaste ji
(a) are you US person ( citizen/ GreenCard ) ?
(b) Which country are we talking about? Are we dealing with 2023 or 2024? If 2023, have you already filed the return ? If 2023 and filed/accepted, did you use Foreign Tax credit or Foreign Earned Income Exclusion ?
(c) Are you currently in the USA or still abroad ? If abroad, which country ?
I understand some of these questions may not appear to be directly related to your questions, but (to me) are necessary to provide an answer focused to your particular situation. If you are uncomfortable with answering all or some , you are welcome to PM me ( still though with nil personally Identifiable Information) .
Please answer -- I will circle back once I hear from you --yes ?
Namaste ji
pk
US
Singapore
2023 Not filed
Still overseas in Europe
@Raj1 , based on your answers to my questions ,
(a) Assuming that you meet the Foreign Earned Income Exclusion (i.e. meet the Physical Presence Test -- 330 days abroad in a test period of continuous 12 months ), the amount you paid back to your employer during 2023 needs to be recognized ( i.e. by reducing your foreign earned income by the amount paid back) in 2023.
(b) If on the other hand, the amount paid back occurred in 2024, then you need to account for this in your 2024 filing ( during 2025 filing season ).
Note that Singapore does not have a tax treaty with the USA. Thus Foreign Tax Credit is not an option. However, Foreign Earned Income Exclusion is still available to you.
Does this make sense ? Is there more I can do for you ?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Rski1957
New Member
eia123
Level 1
mulleryi
Level 2
R5busa10
Returning Member
kaypiercy1-gmail
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.