Common questions about Form 1116, Foreign Tax Credit in Lacerte

Get answers to frequently asked questions about entering an individual Form 1116, Foreign Tax Credit, in Intuit Lacerte.

• Generating Form 1116 Foreign Tax Credit for an Individual return
• Electing not to file Form 1116 with an Individual return in Lacerte
• Calculation of the Qualified Dividend Adjustment on Form 1116 Line 1a in Lacerte
• How to enter foreign taxes withheld from foreign income to report on Form 1116 in Lacerte

How is the pro rata share of home mortgage interest calculated?

Although Lacerte doesn't print copies of the worksheet, the program uses the Worksheet for Home Mortgage Interest - Line 4a found in the Form 1116 instructions to calculate the amount on this line.

If you disagree with the calculated value:

1. Go to Screen 35, Foreign Tax Credit (1116).
2. Scroll down to the Deductions and Losses section.
3. Enter the appropriate amount in Home mortgage interest [O].

What if line 17 is zero or less?

When line 17 is zero or negative, your client's net foreign source taxable income for this category is too low to warrant a credit. If this appears incorrect, verify the amounts on lines 15 and 16.