Question

Foreign tax credit

Forum|Forum|1 year ago
February 17, 2025
1 reply
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In the pc version of Turbotax I cannot find how to enter my foreign tax credit. I live in Switherland and have pension income. TT shows the carry-over from 2023, but doesn't ask for the amount of tax paid in 2024.

The system goes in circles taking me back to the carryover adjustment page.

Thanks in advance.

Frederick

DaveF1006

You would need to apply a foreign tax credit for the amount of tax you paid in Switzerland. Here is how to enter.

Go to Federal
Deductions and credits
Estimate and other taxes paid
Foreign Tax Credit>start or revisit
When it asks We just need to check if you have any uncommon situations indicate I paid foreign taxes on income I earned while working in another country.
At some point in the interview, it will ask if you wish to take a deduction or a credit. If you are able to itemize deductions, you may consider taking the deduction.
There will be questions in the next screen asking you the description of the Foreign Taxes paid and the amount.
If you find that this has no effect on your tax return, you may circle-back and choose you wish to take a credit.
Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
The first that you will be asked is what category of income is it, you will say Passive income since it is from a pension..
Next screen will say Country Summary, select add a country
When it says Other Gross Income - XXXX, Here you put in the Gross Amount you earned in that country.
Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - XXXX, here is where you record the amount paid under Foreign Taxes.
Finish out the section.

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A

AlfreddoAuthor

Hi Dave,

I read your message but my reply apparently didn't reach you. Please accept my apologies.

Thanks for your input!!

I followe the steps you outlined, but the system doesn't allow me to enter a tax credit for 2024. It applies only the carry over from 2023, which leaves me with a very large tax due. It continues to circle back to the carry-over adjustment page.

I am using the downloaded PC version of TT. I even tried entering the credit directly on the worksheet, but taht didn't work either. There is a question about foreign tax paid on Schedule B - Intrest and Divident, but I thought that was only for tax paid on that category of income. Maybe it applies to all income?

Best

Fred

DaveF1006

Yes, I can see how frustrating this is. I would like to look at this in detail. To do this and look at this in detail, we would like to see a diagnostic copy of your return. The information in this file is a clean copy. It doesn't have personal information, but it has numbers so we can troubleshoot more deeply, check for problems with calculations, and see how certain items are used. Here is how to order.

For Turbo Tax online, go to tax tools>tools>share my file with agent. When this is selected, you will receive a token number. Respond back in this thread and tell us what that token number is.

If you use the desktop version, go to the black stripe at the top of the program, click on online, and then select send tax file to agent. Let us know what the token number is.

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