itonewbie
Level 15

@kristinacoley  What you stated is not correct.  CTC has nothing to do with the US-UK DTA; on what basis do you believe that your client should be allowed the credit based on the treaty?

Are you sure claiming FEIE would produce the optimal result, if your client is in the UK, given the effective tax rate there would generally be higher?

In any case, Lacerte/PTO are NOT capable of handling FTC when FEIE is claimed by taxpayers in fiscal year countries like the UK.  Overrides with offline computations will need to be made and statements prepared offline will need to be attached to the return to supplement the stock statement which awkwardly shows the override for scaledown ratio.

Lacerte/PTO will also be wrong if FEIE involves income that should be sourced to multiple prior or future years (such as stock options or various types of bonuses).  This is due to the lack of a proper coding option - the system permits only coding to prior/future years and does not differentiate whether only a portion should be sourced to the year immediately prior or after.

Intuit has been made aware of these technically incorrect issues for years but does not see these as a priority even though returns prepared by unaware preparers, relying on the built-in tax logic in these professional tax products, will be incorrect and will create unnecessary exposures to both the preparers and the clients they serve.

@IntuitBoris  Hi, Boris, could you please escalate this again and give us an update?  Thanks!

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