Tax paid to a foreign country is deductible on Form 1116. Here is how to enter information on the form in TurboTax Online:
- Click on Federal Taxes (at the top)
- Click on Personal tab on the menu bar at the top.
- Below that menu bar, click Deductions & Credits
- When the page opens,
click on "Explore
on my own" just under the Easy Guide button
- On the next page, scroll
down to the "Estimates and Other Taxes Paid" section and select "Foreign
Taxes". If you have not already entered foreign taxes from your 1099-B, K-1s or other forms, enter your foreign
taxes paid, and the program will give you the option to take the credit on Form
1116.
If you are using the desktop version:
1. Click on Forms located upper right of the screen
2. Click on Open Forms
3. Type 1116 in the search box located in the pop up window
It will add the form to your return
This
article provides more information about the foreign tax credit.