Foreign Taxes Paid Shown on K-1 Not Flowing Through to From 1116 or Schedule 3

[guylafleur]

I have a $500 foreign taxes paid item on a K-1 that Turbo Tax is not flowing through to a From 1116 or Schedule 3, so I am not getting the benefit of a $500 tax credit.  I have tried overriding the foreign taxes paid on Schedule 3 (I am filing married filing jointly, and total foreign taxes paid are less than $600), but TT will not permit the override.  Any suggestions?

[ThomasM125 · Accepted solution]

The foreign tax credit without filing form 1116 is only applicable if it is reported on a Form 1099, not a schedule K-1. So, you will need to enter it as follows to generate the Form 1116:

1. From the Federal section of TurboTax, go to the Deductions and Credits section

2. Find Estimates and Other Taxes Paid

3. Choose Foreign Taxes

4. Indicate that you paid foreign taxes or have credits from prior years

5. Work through the section until you see an option to take a deduction or credit, the credit is usually better

6. Complete the rest of the section