How to file Foreign Earned Income/Tax Deductions ?
reiayanami
Member Posts: 1 Newcomer
in Income
I worked in a different country for 3 months and was deducted the foreign taxes in that country. I did not receive a W-2 or any US tax form of that sort. Where in FreeTaxUSA can I file this? If it is not supported, what can I do?
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Answers
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Hello reiayanami,
Regarding the foreign taxes you paid, those can generally be claimed as a credit on Form 1116 or as an itemized deduction on Schedule A. The Foreign Tax Credit is usually the better option since it reduces your tax liability dollar for dollar. However, our software only supports Form 1116 when the foreign income and taxes are reported on a 1099-INT, 1099-DIV, or K-1. Since your foreign taxes were withheld on wages, our software would not be able to support that situation this year.
You would need to file your return through a different software to report your foreign wages and claim the foreign tax credit associated with them.0

