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Level 1
posted Jun 9, 2020 12:30:34 PM

How to fix error "Foreign Tax Credit Comp Wks: Excluded FEI - Dedns must be entered"

during the final review I receive a "Check This Entry" message for the "Foreign Tax Credit Computation Worksheet", Part III Foreign Tax Credit Computation, line 12 a (1) and (2).
These boxes are empty and the message says "Excluded FEI - Dedns must be entered" resp. "Total FEI - Dedns must be entered"

I didn't have this worksheet in my return last year which was prepared by a professional. I cannot find this worksheet in the IRS instructions for form 1116. If this is a worksheet it's usually not submitted for the final return.

how can I fix this? what needs to be entered here?

0 1 505
1 Replies
Level 1
Jun 9, 2020 1:05:20 PM

I found a fix in this answer - thanks, KarenJ2

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-taking-foreign-tax-credit-on-income-exceeding-foreign-earned-income-exclusion-threshold/01/1402849/highlight/true

 

Proceed to the foreign tax credit section of the return 

  1. First screen say yes you paid foreign taxes 

  2. Go through a couple of screens, Tell Us About Your Foreign Taxes say None of these apply - if they do not apply

  3. Click you want the credit 

  4. Click through a couple screens and click the income category as General Category income 

  5. Add your countryXXXX

  6. When you come to the screen Foreign Taxes Paid XXX. enter your taxes in the box for Other Income

  7. When you get to the screen, Reduction in Foreign Taxes, you must enter your foreign earned income exclusion in the first box and your total foreign earned income in the second box.  You must reduce your foreign taxes as you cannot take a credit for the income that you have excluded.  Explanation can be $50,000 * 90,302/ 287,499 = $15,705

  8. Country Summary - click Done