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K-1error"U.S. source-other ded plus foreign other expenses allocated at beneficiary level should not be greater than total other expenses allocated at beneficiary level."

I've entered my K-1 details to the best of my ability, but some of the questions are worded in a way that doesn't line up with the information given in the statement. Now I'm getting this error which makes no sense.
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jtax
Level 10

K-1error"U.S. source-other ded plus foreign other expenses allocated at beneficiary level should not be greater than total other expenses allocated at beneficiary level."

You may need info in supplemental attachments to the K1. Sometimes trustees do not give you enough information, and you have to go to them and ask.

 

The basic idea is that for the trust income that is allocated to you as a beneficiary (and not kept at the trust's level and reported on the trusts 1041), some expenses are related to that income. 

 

I.R.C. 904(a) limits the amount of the foreign-tax credit (FTC) as follows: https://www.law.cornell.edu/uscode/text/26/904

 

       FTC max = US tax times [foreign income / worldwide income]

 

So, to calculate that amount, TT needs to know the beneficiary's foreign and US income and deductions related to that income. 

 

The Foreign deductions + US deductions must equal the worldwide deductions. It sounds like that is not the case in what you entered. Here's an example of that. In this case, the $200 either needs to be $600, or the US/Foreign source deductions need to be less (and add up to $200).

 

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