The foreign income information is used to determine the amount of foreign credit you will be able to claim this year. It is reported as Foreign Income as you complete the ZZ information required in Box 14 of your K-1.
Now you will need to record this same amount in the section where you will claim your Foreign Tax Credit. Here is how to claim the credit.
- Go to Wages and Income
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- As you go through the screens, when it asks "Tell Us About Your Foreign Taxes" select none of these apply.
- When it asks if you wish to take the deduction and credit, take the credit.
- Continue through until you reach a screen that says "No other income or expenses" Say no
- Continue through until it asks the income type, say Passive Income
- Next add a country pick XXX.
- Now go through the prompts; there'll be a screen asking for the Gross Income and the foreign tax paid on the income.
- Continue through the section until you are done.
There is no mistake on the K-1.You may use it to report the information you need. There are no entries required for Boxes 1-8 to report your K-1.
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