Form 1116 - Foreign Tax Withheld Puerto Rica cannot get Form 1116 to compute credit

[IntuitKatieB]

Hey there, Harvey! Thanks for joining. 

First, take a look at this article with detailed instructions on how to complete form 1116 in ProSeries. Let me know if you still have any questions. 

https://accountants-community.intuit.com/articles/1608759-entering-income-for-the-foreign-tax-credit...

[Harvey]

The client had W2 income from working in Puerto Rica, the magic boxes do not include W-2 wages.

So I'm not for sure how to plug it in as then it would not tie to type of income listed. Interest, Dividend, etc.

[IntuitCharlene · Accepted solution]

For Wages there is  spot in ProSeries to enter Foreign Wages that will flow to line 1 without generating errors on a W-2 asking for things like EIN.

In ProSeries there is a Wages, Salaries and Tips Worksheet. Line 8 is for "Items not on Form W-2 or Form 1099-R" and 8b is for Total Foreign Source Income. If you input the wages there they would show on the 1040 line 1. 

Then when you fill out the 1116 Foreign Tax Credit Comp Worksheet you would but the same wages on 1a and taxes paid on Part II column R (1) Other to see if they are eligible for a credit for those taxes paid.