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leenaud1
Returning Member

Foreign taxes reported on K1 not flowing to sched 3

I have several sources of foreign taxes paid, 1099DIV and 2 K1s . All are small amounts adding up to about $332. Whatever I try, the amounts on the K1 do not flow to sched 3. I would override the amount on sched 3 if I could but it does not let me. Does any one have any suggestions

6 Replies
Mike9241
Level 6

Foreign taxes reported on K1 not flowing to sched 3

if you are single then since the FTC is over $300 you need to complete form 1116

on 1099-DIV you would link to form 1116 column A

on 1065 k-1 you would need to complete the subsection for FTC. and link to column B pf form 1116

leenaud1
Returning Member

Foreign taxes reported on K1 not flowing to sched 3

Forgot to mention that we're filing jointly.

leenaud1
Returning Member

Foreign taxes reported on K1 not flowing to sched 3

The only way around it, I found, was by manually entering the amounts on sched. 3

Irene2805
Employee Tax Expert

Foreign taxes reported on K1 not flowing to sched 3

After entering the information from your K-1, you need to go through the Foreign Taxes part of the interview to calculate the credit.  Please follow these steps:

  1. Click on Federal  > Deductions & Credits
  2. Scroll down to the Estimates and Other Taxes Paid section and click on the box next to Foreign Taxes. 
  3. On the Foreign Tax Credit screen, click on the Yes box.
  4. On the Before We Begin screen, click on the Yes box.
  5. On the Do You Want the Deduction or the Credit screen, click on the Take a Credit box.
  6. Continue through the screens.  You will be asked to select the country where you earned the income.  [You can select various if you worked in more than one country.]
  7. On the Other Gross Income - [country] screen do not re-enter your W-2 income.
  8. On the Foreign Taxes Paid - [country] screen, enter the amount of foreign taxes you paid.
  9. You will be brought to the Country Summary.  Click Done.
  10. You will eventually be brought back to the Foreign Tax Credit Summary.  If you need to report foreign tax paid on another category of income (e.g. investment) click on the Add a Foreign tax link.  Otherwise click Done.
     
leenaud1
Returning Member

Foreign taxes reported on K1 not flowing to sched 3

Thanks for taking the time trying to help me. This is exactly what I have been trying to do. I have 2 trusts, in country various. I just keeps me in a loop:

Do you want deduction or Credit

Credit

Income from foreign countries

Various

Report Income

Then the 2 trusts show up each with a check box

I select both

Because I did enter that information already from the K1 sheet it asks me if I want to review

Yes

Brings me back again the Various

and I'm back in the loop

 

Baffled!

 

 

 

 
 

 

LinaJ2020
Employee Tax Expert

Foreign taxes reported on K1 not flowing to sched 3

Check "No" to question asks if you want to review. 

 

When you answered Yes, it takes you back to the beginning to review your entries. 

 

@leenaud1

 

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on a Form 1116 along with your US tax return.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  

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