Trust K1 sub screens for foreign taxes

[Guyle]

Hi TTFolks!  long term user, love the product, love the community!  Using PC CD premier version. Need help from the brain trust here. We received a K1 for a trust that had no Box 1 or 2 entries but had box 14 entries (1 B entry and 3 Z entries for foreign sources ).  This is a beneficiary share of a testamentary trust for 2022.  TT asks for an address of the “trust”?  I assume it’s for the fiduciary (or trustee) not the beneficiary.   There are 5 sub screens for these categories that I am having trouble completing.   

The first window just documents the 4 box 14 (1 B, 3 Z’s) categories.  The second window asks for; a) Foreign taxes country (I said various), b) 3 options for income sourcing – I said beneficiary level foreign source as the best of the three.  The third window asks for Income category – I said passive.  The fourth window asks for expenses and deductions.  I entered my expenses under “interest expenses – foreign source”  I entered nothing under “deductions”. On my fifth window I am asked for a) total applicable losses (general foreign gross receipts minus expenses) I entered a negative number from cpa statement. B) foreign taxes accrued – I entered box 14 category B from cpa statement, and c) something called “reduction in taxes available for credit” (I have no clue what this means or what to enter).  My next screen asks for specific info on Code Z entries?  Were the earlier screens just for code B foreign taxes?  My code z statement values addressed many of those questions above (eg gross receipts, expenses).  I assume that since we have no state income tax in washington I can ignore those questions, but the bottom of this screen asks to enter (reenter?!) my code z entries (with more detailed description for each? – which I did).  Finally my cpa statement includes 2 code Z categories for AMT which I will include in the more detailed code section mentioned just above.  Or should I just leave them off my return ince I am nut using the amt method for my return?  I cant believe how complex this set of questions are.  And very little TT app help to explain the myriad number of categories.  This section of completing a k1 needs improvement.  My Trust CPA is able to enter STMT into their 1041 and documented all of this detail, I cant do this with TT…   I have to answer 35 questions with just the right answers to get the desired result.  (what am I missing?)   HELP!!!

[Guyle]

Hi TTFolk!  Think I was able to divine an answer to this K1 dilemma…  Was able to clear the errors and make some overall sense of the entry screens as follows:    

Both Foreign Income and Deductions Allocation screens use a three-tier entry structure (Beneficiary, foreign, and US), the foreign and us amounts must total to beneficiary level.  I thought it was just one entry in the foreign line item.

In the box 14 summary screen, total losses was entered, but “Foreign tax accrued” and “Reduction in taxes available for credit” were left blank. More info is required to make decisions on these.

All the state info was left blank (no state income tax in WA)

Z code detailed descriptions were added from CPA (trust return) worksheet (gross/expenses/AMT calcs)

Passive loss carryovers from previous year were left blank (none identified)

“Qualified Business Income” did not apply and was left blank,

These steps cleared the K1 form error and was left with the correct foreign tax credit on 1040 schedule 3.

The navigation logic does still need some work for K1 entry, and some more “learn more” links are needed for explanations of what data is being asked for.  TY all for reviewing my post.