What should I do if I was already taxed in a foreign country

[maggiebaby2011]

I worked for the US employer before June, and then worked in a foreign country since June (I'm the employee of the foreign company).

I'm a US resident, but I was outside the country since June for the work in the foreign country.

I have W-2 before June and I was taxed in the foreign country after that (no W-2, just a statement).

Which form should I fill? How could I avoid being taxed again in the US?

Thanks.

[doloresha]

You should be able to get a foreign tax credit:
Foreign Tax Credit | Internal Revenue Service (irs.gov)

[ThomasM125 · Accepted solution]

First, you need to report your foreign income. You can do that in the Less Common Income section of TurboTax, then Foreign Earned Income and Exclusion. Then, you need to go to the Estimates and Other Taxes paid section in  the Deductions and Credits area of TurboTax to assign your foreign income to a country and enter your foreign taxes paid. Choose the Foreign Taxes option and work through that section. That may qualify you to get a credit for your foreign taxes paid.

You will get credit for foreign taxes paid to the extent you have income tax on your US tax return that is associated with your foreign income. Any unused credit can be carried back one year for forward up to ten years to be used in future years when you have foreign income that is taxed on your US tax return.

If you are a bonafide resident of the foreign country or will be there for 330 consecutive days, you may qualify to exclude all or a portion of your foreign income from taxation. You will see questions in the Foreign Income and Exclusion section to apply for that. If your foreign income is excluded, you won't qualify for the foreign tax credit, as that only applies to the portion of your US income tax that is based on your foreign income.

[Edited 4/2/24 at 10:45 AM EST] @maggiebaby2011 

[maggiebaby2011]

Thank you @ThomasM125. I went to Less Common Income section, and it asked me to wait until I stay outside the country for 330 days, which will be June 2024. Is it the correct way I should go? I already paid the tax in the other country.

Thanks again.

[ThomasM125]

You need to stay 330 days in the foreign country to exclude all or a portion of your foreign income from tax under the physical presence test. If you think that will apply to you, then you can enter a date 12 months from your start date and see if you can exclude a portion or all of your foreign income from tax. 

If that doesn't apply to you or you want the foreign tax credit, you can leave your income entry in the foreign income and exclusion section as it will be taxable on your US tax return. On the screen that says Whose Foreign Income Would You like to Try and Exclude? answer that you don't want to exclude it: