I can't get the Foreign tax credit for the K1 to work. I have put in all the info from the K1 and the K3. It always is zero for the credit. I did this Foreign tax credit first before the dividends one, so that isn't the issue. I have read most of the notes from Turbo Tax about the FTC, and I still can't get it to work. Customer service suggested deleting the dividend statement with foreign dividends. That didn't work. I have spent several days and many hours on it and I can't get it to work. I am close on the deadline for October 16th. I can't finish the states until I finish the Federal taxes. I received the K1 info just a few days ago.
@KLT19 , sorry for your frustration. Can you tell me what are the following ( summary ) so I can run a simulation and see why TurboTax is misbehaving ----
( a), where are you looking to see the Foreign Tax Credit allowed (form 1116 or where ) ?
(b) what is total Foreign source income, Foreign taxes paid/accrued
(c) What is your US source income
I assuming that you are US person ( citizen/ GreenCard / Resident for Tax purposes ), living in USA -- Tax home US. Also that your investment is in a partnership registered in US and having international income. Please correct / confirm these assumptions.
I will circle back once I hear from you
pk
I am using form 1116. I am using the data from the foreign sourced Income from the K1 and K3. It is foreign tax paid. I am from the USA. The form K1 is from the company my Husband works for. It is a partnership with foreign income. The company's headquarters is in the USA. They have an office that is in a foreign country.
Also, my Husband is from the USA as well. Forgot to mention that. See prior reply.
@KLT19 , so it is a partnership, US based entity; your husband is a partner ( general or otherwise ) ; his share of pass-through items are detailed in K-1 and K-3; partnership had foreign income and paid foreign taxes;. you are both US persons.
To be able to quickly see TurboTax behavior, I need some figures , specifically
(a) Total US sourced income ( general ball park )
(b) total foreign sourced income ( shown on K1/3 ) , what category box in K-1/3 -- best would be if possible for K1 and K-3 , amount and box number
Assuming that your tax home is foreign, are you excluding foreign income ?
Is it possible that your foreign income from K-3 is being excluded ( it should not be )
I will circle back once I hear from. Is this for 2022 , yes ?
If you are abroad when did you arrive there and which country ( for treaty purposes only ) ?
pk