Question

Tax Treaty and re-sourced income

Forum|Forum|5 years ago
March 16, 2021
1 reply
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I live in Japan, and the U.S. Japanese tax treaty re-sources some of my U.S. income, social security and dividends, to Japan so that it is taxed there. I should be able to use Form 1116 to get a foreign tax credit. The Premier edition includes the form, but the Foreign Tax Credit button under Deductions doesn't seem to provide a path to do what I need to do. Am I going to have to do this by hand?

J

jtax

Employee

Does the treaty preclude the US from taxing all of your US-source income or is the US allowed to tax some of it? (Typically the US can tax dividends at not more than 15%).

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