can't edit foreign tax info

[beanat70]

My tax return form 2020 was rejected due to missing or incomplete information on foreign tax credit.  The suggested solution was to go to deductions and credits, then to estimates and other taxes paid, then to foreign taxes, and review/reenter the data.  I do that, select update, then continue on the "foreign tax credit" page and the "foreign taxes" page where I select take a credit.  On the "reporting" page, I select continue then yes to do you want to review.  I select "various" (the only option) on the "income from foreign countries" page, then report income.  On the next page I select the displayed estate (the only option) by checking the check box, then press continue.  The next page states that I have completed reporting all data, and returns me to the previous Reporting page.  There is no option to actually edit any data.  If I select done on the income from foreign countries page, the next page "need to report income" states I have some estate and trust income that hasn't been reported to a country.  Answering yes to do you want to continue returns me back to the "income from foreign countries" page, which is also a loop to a prior page.  There is no option presented anywhere to actually edit or re-enter any data.  How can I proceed to review and/or edit the foreign tax data so I can get the return accepted by the IRS.

[pk]

@beanat70 , while your description of the steps you took to try to edit an entry, I am quite at a loss to understand what your situation is  i.e.  are you trying to enter/ correct a foreign tax paid  by you  on foreign income OR enter a K-1 that you received   for foreign taxes  transferred by a  foreign trust to you?  When I say K-1 I mean  that essentially you are trying to fill  a K-1 ( that is absent  because the trusty being foreign ).  Is the trust / estate   a decedent trust that is distributing  assets to the beneficiaries or is this an active trust that you are a beneficiary of  / you own / control or what ?  I am assuming that you are US citizen/resident / resident for tax purposes and that your tax home is in the USA.  Which  country is trust operating in i.e. under which country's  laws?

I await your answers -- then I will duplicate your situation and see why Turbo is appearing to not function as expected.

pk

[beanat70]

I am a US citizen living in the USA.  The return had been completed, with no errors found by Turbotax - but when submitted, the IRS rejected the return, and the reason was inaccurate or missing info on foreign tax credit.  There is one decedent trust of which I am one of many beneficiaries that reported foreign tax, and one investment, I'm not sure where the error is or what the error is.  I had received and entered the K-1 data from both when I initially completed the return, both listed various as the country(s) for which tax was paid.  Both the bank administering the trust and the company invested in are U.S. based.  I just can't find a way to get back to the K-1 entry screen to see if I can figure out what the problem is.  I thought I had entered both K-1's properly to begin with.

[pk]

@beanat70 , let me try and  recreate your situation and come back to you.

However,  I would like to point out the following:

(a) various is often a problem-- used to work  in earlier years ( with the IRS that is  ) -- now you need to use  RIC -- "regulated investment company+ when they are investing in multiple countries -- especially since both entities you are talking about based in the USA and regulated.

(b) I am not sure I follow why the estate of a decedent gave a you K-1 with foreign taxes.  I am imagining that  the decedent, a US person had properties/assets  in one or multiple countries, he/she had a  last will & testament and all his assets  were in a living  trust with pour-over clause i.e. into the estate. Thus the  Estate/Trust sells off everything, pays all the creditors of record, pays all taxes due  ( including foreign taxes ) and then distributes  the remainder to the beneficiaries.  One reason for this is that the transactions are being done in respect of the decedent ( all disposition transfer or other taxes/ estate taxes/  capital gains taxes etc ) etc. ). Beneficiary claims are  secondary  to all these.  The case of foreign  income or gains taxes  become even more important -- the estate can pay this as an expense against the income from disposition ----- beneficiaries do get the same benefit ----  foreign tax credit is limited in most cases / situations  by ratio of foreign income to world income.   

I am not a lawyer but just a lowly tax person -- perhaps you should talk to a lawyer familiar with international tax situations.

Excuse my verbosity

stay safe 

pk

[beanat70]

It's actually a trust set up nearly 100 years ago - to be finally distributed 20 years after the death of the last of the second generation following the deceased.  (the bank really sold a bill of goods on that one!)  The bank that manages the trust buys and sells what they want, and if it turns out one or more of the assets they hold paid foreign tax, then that passes through on the K-1.  It's only $26.00, not really worth the time and effort I've already spent on figuring out what to do.  Certainly not worth a lawyer.  Turbotax just won't let me use the guided procedures to edit the K-1's I already entered, as indicated by the loops I discussed in my first post.  The only way I can see to make edits is directly to the forms themselves, which are complicated and will take far longer to work with than the paltry amount I save.  Perhaps the best alternative is to switch the foreign tax to a deduction rather than a credit, eliminating the need for the 1116 forms.  I lose the $26 credit but gain time, and my rebate.