My rental income is identified as related to a foreign country on Schdule E but Form 1116 does not link to or see any foreign income. Do I have to manually re-enter each income and expense line from Schedule E on Form 1116?
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You will need to also enter your foreign rental income in the foreign tax credit section of TurboTax. You only need to enter the gross rental income for Form 1116, not the expenses. Please see the following steps:
To report your foreign taxes paid on wages (or other foreign income) for foreign tax credit:
I am trying to do this for my 2019 tax return. The program already has some foreign tax from a 1099-DIV allocated, and it is not allowing me to enter any other type of income. This is new -- last year, it worked very well. Is there a way to "start over" and delete the existing foreign tax information, in the hope that the other categories will show up?
It looks like this method doesn't work for 2020.
On my FTC for passive income, only the foreign income from 1099-INT appreared on form 1116. (excluding foreign passive rental income on Schedule E)
I selected and entered foreign address for Schedule E passive rental income, and I double-checked that it is recorded as PASSIVE on Schedule E review page. However, it is still not linked to FTC, form 1116 income.
I'm losing affordable credit of some hundreds $ from this error. :(
Anybody knows how to link FOREIGN passive rental income on Sche. E to FTC, form 1116 income section?
@Jes173 Your Foreign Rental Income amount has to be manually entered in the Foreign Tax Credit section. It will not link to Schedule E automatically.
Type 'foreign tax credit' in the Search area, then click on 'Jump to foreign tax credit.
In the Foreign Tax Credit section, choose Passive Category Income and type in Foreign Rental Income and the amount (screenshot).
Continue through the screens as instructed by @KarenJ above.
[Edited 3/14/2021 | 1:44 am]
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