Foreign Tax Credit Doubling Error

Forum|Forum|1 year ago
February 28, 2025
2 replies
26 views

My Foreign Tax Credit get doubled due to programming error. Input is from K-1 Box 14. No Form 1116 is generated. Internet search says this hasn't been fixed since discovered over a year ago. Guess its back to my $500 CPA. Maybe it will get fixed by next year. Sure wish I had my 8 hours of wasted time back.

DaveF1006

Alumni - Intuit

It depends on the amount of the foreign tax credit. If it is $300 or less(filing single) or $600 Married Filing jointly, you won't see a Form 1116 in your return. Instead the tax will be reported directly on Line one of Schedule 3.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

john5408Author

Level 2

A common mistake for doubling the Foreign Tax Credit in T.T. is because the user unknowingly enters the value twice due to the wording on the user's Beneficiary Foreign Tax Credit Schedule that the user gets from the user's trust. Box 8 of the form says "Foreign taxes paid or accrued". However, the T.T. input screen for Box 8 asks only for "Accrued" foreign tax. I had to look up the definition of accrued, which is taxes "not yet paid". TurboTax needs a warning when Foreign Tax Credit is doubled that paid does not mean accrued. My fix was to only enter the K-1 Box 14 B value for a paid Foreign Tax and ignore the Box 8 on my trust's Beneficiary Foreign Tax Credit Schedule.