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Entering Income For the Foreign Tax Credit Form 1116

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Intuit

Entering Income For the Foreign Tax Credit Form 1116

Problem Description

Where do you enter Foreign Income for Form 1116?

Solution Description

  • Enter  Foreign Income on the applicable forms in the tax return
    • For example, enter Interest  and Dividend Income on the Schedule B
    • Enter Rental Income on the Schedule E Worksheet
  • Some input can be selected to, or will flow automatically to Form 1116, including
    • Interest Income and Dividend IncomeSchedule B
      1. Double-click on Payer's Name to access either the Interest Income Worksheet or the Dividend Income Worksheet
      2. Scroll down to the Foreign Tax Information section, enter the foreign taxes paid on Line 1.  Enter the country on Line 2.
      3. Check box A, B or C on Line 4 to choose which column of that copy of Form 1116 to report the income.
      4. Select whether taxes were paid or accrued on Line 5.
      5. Enter the date paid or accrued on Line 6 and the total foreign source income from Box 1 on Line 7.
    • Partnership K-1 Income, box 16
      1. Enter the applicable codes and their amounts for box 16.
      2. Click the QuickZoom button below box 16 to enter additional information.
    • S-Corporate K-1 Incomebox 14
      1. Enter the applicable codes and their amounts for box 14.
      2. Click the QuickZoom button below box 14 to enter additional information.
  • Estate and Trust K-1 Income, box 14
    • Enter the applicable codes and their amounts for box 14.  Unlike the Partnership and S corporation K-1s, the Trust K-1 does not flow this information to Form 1116 automatically
    • Enter any foreign income and foreign taxes reported on the Estate or Trust K-1 on the Foreign Tax Credit Computation Worksheet
Note:
  • Any Foreign Income not listed above will need to be entered on applicable income Form, Schedule or Worksheet as well as on the Foreign Tax Credit Computation Worksheet.
  • Each 1116 accommodates up to three countries.
  • Use a separate copy of Form 1116 for more than 3 countries
  • Use a separate copy of Form 1116 for each category of income: 
    • Passive,
    • General,
    • Section 901(j),
    • Certain income re-sourced by treaty,
    • Lump-sum distributions
  • To create additional copies of Form 1116:
    1. Go to the top of Form 1116
    2. Select the QuickZoom for QuickZoom to copy of Form 1116,
    3. Select Create a new copy In the pop up window, Select Form 1116
    4. Enter a name or copy number for the new form
    5. Click Create
    6. 1040 Tax Returns with multiple copies of Form 1116 are not eligible for e-file and must be paper file

For more information, see:

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