form 1116 not being produced

Forum|Forum|2 months ago
March 28, 2026
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I have a question with form 1116 for 2025 TT. I got foreign income from Puerto Rico (considered foreign country for tax purposes). I entered the income using a substitute 1099-R by using form 4852. the source of the income is a traditional IRA at local bank in PR (Banco Popular de Puerto Rico). The income is reported in the IRA, 401K pensions section of TT income section. It accepts the income. Problem come when i want to input the taxes paid to PR. I go through the interview believing it will trigger form 1116, but it never does and kicks me out to summary review. In the summary it does not show carryover credits from 2024 it also does not show the taxes paid to PR on 2025 (of course because it does not allow me to enter the). What's happening? last year it allowed me to enter the foreign taxes paid to take the credit and it also produced and included the form 1116. I need to (1) enter the foreign Tax paid in PR (around $5k) on IRA distribution (of around $50k). I also need (2) to get TT to produce form 1116 for 2025. An finally how to get TT to recognize and include 2024 foreign Tax carry (from last year 024). Last year I used TT online. this year I'm using TT desktop on windows. Can you help please?

Mike9241

Level 15

If you must report income from Puerto Rican sources on your U.S. income tax return, then you can claim a foreign tax credit for income taxes paid to Puerto Rico on that income. To calculate your foreign tax credit, you must reduce the income taxes paid to Puerto Rico by the amount of income taxes allocable to excluded Puerto Rican source income. When claiming a foreign tax credit, you must complete Form 1116, Foreign Tax Credit. See Topic no. 856 for more information about the foreign tax credit.

For more information about how to allocate deductions and credits with respect to excluded income as well as how to determine if you're a bona fide resident, refer to Topic no. 901, Publication 570, and Publication 1321 PD

there is no place to enter foreign taxes paid on either a 1099-R or the 4852. You must enter them through form 1116, which is under deduction and credits, not the income section. the basic version of online doesn't allow for the FTC.

joseveAuthor

Level 2

thank you for your response Mike. that was precisely my issue, TT not allowing me access to form 1116 so I could not enter the taxes paid to PR. through some responses in the community i went back to forms and enter x mark where it says form 1116 ids needed. then continued with interview and i think i was making a mistake in one of the question. i fixed that ¨mistake¨ and next round TT allowed me to fill form 1116... so i think this case is closed. i can see my foreign tax credit included in the calculations of my 1040 tax return. thanks you!!!