Alva124
Level 2
05-10-2021
06:33 PM
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Hi,
I received a total wages from the UK and Paid the taxes on it. When entering the information on the Screen 35, Foreign Tax Credit (1116) Lacerte I noticed that the refund went up significantly but the AGI did not.
I entered the total wages under "Other Foreign Source Income" and the total tax paid in the "Foreign Taxes Paid" Section.
Am I doing this right? The fact that the AGI is not increasing makes me think I am doing this wrong and Lacerte is only picking up the Tax Credit? Do I have to add the the total wages on screen 10-Wages?
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sjrcpa
Level 15
05-10-2021
09:33 PM
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Yes you have to report the wages as taxable wages.
Foreign tax credit only applies to mitigate the US tax on income that is also taxed by another country.
Ex-AllStar
