Question

Where to report foreign house sale income in TurboTax?

Forum|Forum|4 years ago
March 3, 2022
1 reply
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I paid tax to CRA (Canada Revenue Agency) when I sold my Canada house as a Canada non-resident. When I tried to report Foreign Tax Credit from TurboTax, the software requires that the paid foreign tax should have been reported on 1099-INT?interst), 1099-DIV(dividend), 1099-OID(original issue discount), or Schedule K-1. But it seems these forms are not fit for my paid tax to CRA. Could you please let me know which form should I report on?

TurboTax Online

A

arthur.zhaoAuthor

H

HelenC12

To be eligible for the Foreign Tax Credit, you must be a U.S. citizen or resident alien or a U.S. nonresident alien who is a full-year resident of Puerto Rico.

You must have paid, accrued, or owe taxes on foreign income that is also subject to U.S. income tax. This foreign tax must be an income tax or a tax in lieu of an income tax that is imposed on you and is a legal and actual foreign tax liability.

Both the credit and the deduction are entered in the same place. Here's what you do:

Make sure you've entered all your foreign income
From within your return, search for foreign tax credit and select the Jump to link in the search results
Answer Yes to Did you pay foreign taxes in 2021 or have credits to use from a prior year?
Follow the instructions to get the credit or deduction

In most cases, taking the credit works out better than the deduction. We'll help you decide which one's best for you when you go through this section.

If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.

Note: You won't be able to take a credit or deduction for taxes paid (or accrued) on excluded foreign earned income or housing. This is because excluded income and housing isn't taxed in the first place.

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A

arthur.zhaoAuthor

>>> To be eligible for the Foreign Tax Credit, you must be a U.S. citizen or resident alien or a U.S. nonresident alien who is a full-year resident of Puerto Rico.

Yes, I'm eligible for the Foreign Tax Credit. Thanks.

>>> 1. Make sure you've entered all your foreign income ... ...

Actually, that's my question if it's missing from my post. On which form or category should I report my foreign income (for this foreign house sale in 2021)?