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March 16, 2025
Question

I filled in foreign tax credit table 1116, but why it didnot go into my total tax due amount?

  • March 16, 2025
  • 1 reply
  • 0 views
the total tax due remains the same say 50k, even after I filled in 60k foreign tax credit, is it correct? how should I deal with the situation.

1 reply

March 16, 2025

@gswu , cannot comment / help -- need lot more info.

(a) Are you US person ( Citizen/GreenCard/Resident for Tax purposes )?

(b)  Roughly what is your world income ( US sourced income Plus Foreign income ) and Foreign income ?  TurboTax uses this as a ratio to allocate  US taxes to the foreign source income 

(c) Which country is this income from ?  ( There must be a Tax Treaty in effect and also there may be  controlling clauses in addition to the double taxation clause ).

(d) What type of income -- Passive  such as  ( interest/dividend/ capital gain  etc. etc. ) or  HTKO or  active ( self-employment  etc. ) ?

(e) Is your Tax home in the USA or are you abroad  ( and if so which country ) ?

I will circle back once  hear from you 

 

gswuAuthor
March 16, 2025
Thanks pk(level 15) very much. (a) I have Greencard. (b)(c)(d)I have no US income. My 2024 income was about 200k salary, 250k dividend from China and 50k rent from UK. (e) I am aboard in China. Thanks again for your answer.
March 16, 2025

@gswu , thank you for your responses.   

I am assuming that 

1. You are using Foreign Earned Income Exclusion ( FEIE -- form 2555 ) to exclude  the maximum allowed   wages to be excluded; 

 2.  Using one   form 1116  ( General category )  claiming  FTC on the unexcluded  wages. 

 3. You are using a second  form 1116  ( Passive Category )  claiming FTC  for Dividend + Rental foreign  income

 

Let me go back and refresh my memory on China Tax treaty and  come back a bit later 

Xie Xie

 

pk