Form 1116 will generate if foreign taxes paid are entered in the appropriate income screen (interest, dividends, and Schedule K-1). However, input for Form 1116 can also be entered directly if you have foreign taxes from a different source, like a 1099-B.
If you are looking for how to enter K-1 foreign taxes on an individual return (Form 1040), see here.
To enter Form 1116 information directly:
- Go to the Input Return tab > Credits, then select Foreign Tax Credit (1116).
- Select the Name of foreign country from the dropdown list.
- Select the Category of income from the dropdown list.
- Scroll to the section Gross Income Within Country then to the Other Foreign Source Income subsection.
- Enter the amount in the Income (Click on button to expand) field.
- Scroll to the section Foreign Taxes Paid or Accrued and make the applicable entries for foreign taxes paid or accrued (U.S. dollar entries must be made for credit calculations).
- Enter the withholding amount in the U.S. Dollars subsection in Other foreign taxes.
- Entries in the Foreign Currency section will not generate a credit, and ProConnect won't automatically convert amounts entered here; conversion will need to be done manually.
- Entries in the Foreign Currency section will not generate a credit, and ProConnect won't automatically convert amounts entered here; conversion will need to be done manually.
