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.
