MA_EUR

Hi all, I wanted to share my timeline here. 08/19: arrival in US 08/22: send package 08/23: NOA1 09/15 - received biometrics appointment. This took longer than I expected (usually around 10 days after NOA1). I noticed all cases get updated each Friday of the week 09/18: Biometrics done 09/18: EAD approved - online portal not reflecting this yet, however, USCIS officer confirmed this. I expect to get the EAD card by end of next week.

How fast is everyone getting their biometrics scheduled?

Thanks for all the feedback I really appreciate it. After this post, I did deep dive more into the form 1116 and it made more sense. I altered my calculations and even accounted for potential raises, 401k contribution and the standard tax deduction. However, like you pointed out above, I also came to the realization that it does not matter what I will do in 2024 right now. I will have to see then what makes the most sense after all has happened. I'll definitely take your note with me to get TurboTax to ease some of the calculations. Again, appreciate your input. Thanks!

I discovered an error in the calculation above. Actually the US taxes would be around $33000 in 2023. Therefore, the Foreign Tax Credit Limit is $9810. In case I cannot carry back and since, my foreign income is relatively small compared to the total income (only 30%), then I might be better of using Foreign Income Exclusion instead...

Wanted to quickliy add for others the following link - https://www.irs.gov/instructions/i1116

Hi @Wuozopo, I have seen your replies on this topic on numerous discussions. I wanted to thank you as it has been extremely helpful for me. I was wondering if you could quickly go through my situation to check if all makes sense. I will be permanently moving to the US (K-1 Visa) in 2023. You can assume that I will become a tax payer in 2023 (substantial presence test). Therefore, I will need to file taxes in 2024 for the 2023 fiscal year. I will do this jointly with my wife. As, I come from a high-tax country, I would like to use the Foreign Tax Credit (Form 1116) to offset high taxes I paid for fiscal year 2023. I am from a country that the US has a tax treaty with (including social security tax treaty). 2 question from my end. Question 1: Are the following calculations correct? Foreign Gross Income of $55000 and Total US Income (including partner's) of $130000. Total Worldwide Income is then $185000. Total US Tax Liability (Excluding Social Security) is around $46000. I will have paid $17000 in taxes (excluding social security) in my home country. Foreign Tax Credit Limit would be = ($55000/$185000)*$46000 = $13675. The foreign income was 30% of the worldwide income, and thus total tax credit limit is 30% of US Taxes (excluding Social Security). Since, I have already paid $17000 in foreign taxes, I will only be able to reduce taxes by $13675. Then, there is a $3325 foreign credit limit unused. Question 2: I know that you can either carry over or carry back this unused foreign tax credit. Carrying it over will not be very beneficial as I don't expect to have any foreign income in the next 10 years. So I looked at carrying it back, however, that seems a bit strange in my opinion. My wife and I will only have filed jointly in 2024. It seems strange that I can look back - including her income - to fiscal year 2022 and reduce taxes there as well. Especially that I have only become a US tax resident in 2023. Without giving the numbers, the credit limit for fiscal year 2022 would be more than the outstanding $3325. Does this mean, I could get the $3325 back? I'm pretty confident I got everything right for fiscal year 2023 and the form 1116. However, the carry back is not really clear to me. Thanks a lot for your input. I really appreciate it and again you have been super helpful for me already!! Thanks!