It depends. If the only income source is foreign sourced dividends, you would enter this amount under the heading of Gross income Sourced at the Beneficiary level, Foreign Sourced Income. The information entered here will allow you to receive a foreign tax credit.
- After entering this information, press continue
- In the next screen, indicate this is passive income.
- In the next screen, if you have no expense or deductions to report, just continue to the next screen. You are no obligated to report anything here if you have nothing to report
- Same for the net screen if you have nothing to report.
- Continue through the interview until you are done with this section.
Now you need to claim the foreign tax credit. Most of the information you entered here will be mapped to that section. Here is your next step.
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- The first will screen inform you you already reported your information so you are off to a good start.
- Continue until you reach a screen asking if you wish to take a deduction or a credit. You can take either depending on if you itemize your deductions. if you don't itemize, choose to take the credit.
- Continue until you reach a screen that says income from foreign countries. Your country should be listed there since you reported it when you reported your K-1 information after entering the income from the foreign dividend.
- Next screen has the heading Report Foreign Tax paid to XXX. Put a check in the checkbox, press continue.
- Then there will be a screen telling you you have completed your reporting.
- Press done in the next screen
@alexandrafrench
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