To ensure a clean start, delete any F1116’s before entering the foreign tax credit interview. .
1. Foreign Tax Credit.
Continue
2. Tell us about your foreign taxes.
This screen may or may not appear for various reasons.
If displayed, click on Continue.
3. Foreign Taxes
Continue
4. Do you want deduction or credit?
Credit
5. Reporting foreign taxes paid
Continue.
6. Where did you receive dividends income?
Not used at this time, so just select the first one then Continue
7. Income from foreign countries
Done
8. Need to report income
No
9. Simplified limitation election for AMT
This screen may or may not appear for various reasons.
If displayed, will assume YES is selected
10. No other income or expenses
No
11. Completing forms 1116
Continue
12. Foreign tax credit worksheet
Continue
13. Choose the income type
General category then Continue
14. Country Summary
Click on Add a Country.
15. Select Canada from the list.
16. Other Gross Income-Canada
Enter the description and the amount even though entered elsewhere.
17. Definitely related expenses
Enter any applicable amount.
18. Foreign Losses.
Enter any applicable amount.
19 Foreign taxes paid.
Enter the amount in the box for other income.
20. Country Summary
Done
21. Continue thru the next several screens until you reach:
22. Foreign Tax Credit Summary.
You should see displayed Copy 1 General Category Income.
Click Done.
23. Go thru a few more screens and exit the interview.
Now re-enter the interview and work through the screens for the dividends to generate COPY 2, passive category F1116. TT may ask for paid or accrued and the date paid. The default is “Paid” and the date 12/31/2021.
