My client received a management equity plan payout denominated in Euros from which Dutch taxes were withheld and for which I believe he should get a foreign tax credit.
I've claimed the payout as Other Income on Sch 1 line 8 of Form 1040. The payout does not qualify as Form 2555 Foreign Earned Income.
I've been completing the Foreign Tax Credit Computation Worksheet with these inputs:
- General category income box checked
- Gross income from the Netherlands, line 1a Column A
- No expenses on line 2
- Lines 3 & 4 self-calculated
- Nothing for line 5
- Part II line 8r(1) - the amount of taxes paid, converted to USD
- No inputs in Part III
When I then quick-zoom to view the Form 1116, Part III is completely blank. Line 8 does not flow through to Line 9, and nothing follows thereafter. This has been true since early May when I extended the return.
Is there a planned fix for this issue? Or am I doing something wrong?
EDIT: When I manually input/override all of Form 1116 Part III, this is the difference between my client owing $38k and receiving an $11k refund. Unfortunately my overrides appear to prevent e-filing, which I can see in previous threads is a particular issue. What's going on with Intuit and this form?