Question

Citizen but non-resident of US with US income - claiming tax credit for foreign tax on US income

Forum|Forum|1 year ago
October 29, 2024
1 reply
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I am a US citizen but I am currently tax-resident in Australia. Some of my US income is taxable in Australia. I believe I can claim a tax credit in the US for this - but I cannot see how to enter it in TurboTax.

TurboTax Home & Biz Windows

T

TomD8

See this previous TT Q&A:

Where should I enter income tax that I paid in a foreign country? I am an expat working abroad and trying to file for Foreign Tax Credit, not the FEIE.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

S

SimonOfMontanaAuthor

So again: US Citizen, currently permanent tax resident in Australia - so paying Australian tax on most US income (Interest, Dividends, Capital Gains, SEP/IRA Distributions). Aust/US have a Tax Treaty to minimize double taxation, although US can additionally tax some income up to a % limit.

Note: The Turbo Tax functionality for Foreign Tax Credit allows only allocation of non-US income to the foreign tax paid functionality - the USA is not an available option to assign income to foreign tax paid.

Perhaps this has to be done outside TT ?