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Deductions & credits
After entering the information from your K-1, you need to go through the Foreign Taxes part of the interview to calculate the credit. Please follow these steps:
- Click on Federal > Deductions & Credits
- Scroll down to the Estimates and Other Taxes Paid section and click on the box next to Foreign Taxes.
- On the Foreign Tax Credit screen, click on the Yes box.
- On the Before We Begin screen, click on the Yes box.
- On the Do You Want the Deduction or the Credit screen, click on the Take a Credit box.
- Continue through the screens. You will be asked to select the country where you earned the income. [You can select various if you worked in more than one country.]
- On the Other Gross Income - [country] screen do not re-enter your W-2 income.
- On the Foreign Taxes Paid - [country] screen, enter the amount of foreign taxes you paid.
- You will be brought to the Country Summary. Click Done.
- You will eventually be brought back to the Foreign Tax Credit Summary. If you need to report foreign tax paid on another category of income (e.g. investment) click on the Add a Foreign tax link. Otherwise click Done.
‎April 6, 2021
5:39 AM