Hi @Rorah ... the Foreign tax credit/deduction stuff is the most complicated thing about most trust k-1s.
Box 14 code I is the new (2017 tax act) "section 199A" pass through deduction. I.e. a lower rate for some dividends coming from certain companies. That # should be what shows up on line 10 of form 1040. TT might ask questions about it later, but I would think you would be OK just entering code I in the K-1.
Box 14 code B is the amount of foreign taxes paid by the trust (usually for mutual funds with overseas dividends that are taxed by a foreign company).
You are allowed either a deduction or a credit for those taxes. Usually a credit is better but not always. To take the credit more information is needed. Specifically TT needs to total all of your income that was subject to the foreign taxes. Let's play with some #'s.
Your total income $100,000. Your foreign income $5,000. Your total US tax owed $15,000. Your foreign tax paid $1000.
The amount of that $1000 that you are allowed as a credit is $15,000 (US total tax) * 5000 (foreign income) / 100,000 (US income) = 15000 * 5% = $750.
So even though you paid $1000 in foreign taxes, you only get a credit for $750. Credits reduce that tax you pay dollar for dollar, so you US tax bill would go down by $750.
(This is oversimplified but it gives you the idea.).
On the other hand you could deduct the full $1000. You can see that might be better depending upon your marginal tax rate and the exact amounts involved. I usually do it both ways to see which is better.
However, to do the credit calculation (but not the deduction) you need the trusts's income that is allocated to you (as the beneficiary) from the US and its income from foreign sources. If you just had foreign source info, I would say you would back into the US income number (total income - foreign income = US income).
But you need foreign income. If the trustee doesn't provide that you can't take the credit. (You don't have to take the credit, but not doing so leaves money on the table). You can ask for that info.
If the code B number is not a lot and especially if you think the foreign income is a small % of overall income, it may not be worth bothering. You could probably just leave out the code B from box 14. The max you could gain is the code B # and you usually won't get it all.
Does that help? If not please ask again.
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