Schedule k-1 for trust and breaking out the foreign investment income

[Redzed82]

I am struggling with a form K-1 and entering the supporting documentation as I do not see the same fields in turbo tax.

I have a K-1 for a trust with boxes 2a $9622, 2b $9622, 12a $121, 12b $121 , 12j $121, 14a $1738 and 14b $565.

When I enter in turbo tax, no problem entering info from boxes as noted above. The third screen asks for more information regarding US and foreign sources and I do not know what to enter. I have a document from the trust indicating the following info needs to be entered but I don't know where. It has: foreign dividend qualified portion on K-1 line 2b $4868, total included on K-1 line 2a $4868.  Foreign tax credit for line 14 code b (where/what is that) country- other, gross income $5779, qualified dividends $5384 and taxes $565. It also lists fiduciary subtraction of $6068.  I am assuming on the next screen, it is passive income, but the next screen asks for total interest expense and the breakout of US and foreign source as well as deductions. I have tried entering the $5779 as the total, and $4868 as the foreign qualified and foreign taxes as a deduction here, but it seems to auto calculate a US portion and I feel I am getting double taxed since that is also in the $9622 already entered. I am so confused as to where to enter this information and without it, my taxes owed jump dramatically. Looking for help to appropriately enter this in turbo tax. I have tried using form 1116 referenced but nothing matches up to the information I have to confidently know I am putting things in the right place. Appreciate any help anyone can provide.

[DaveF1006]

To clarify are you reporting a k-1 for a 1041 in a turbo Tax individual return or in a Turbo Tax Business product for trusts?

[Redzed82]

It is for an individual return

[DaveF1006]

Rest assured you won't be double taxed because anything entered in Box 14 is informational and won't be reported as taxable income.  How is how to properly report this information.

When yo begin reporting your k-1 (1041).  After you record your initial information, Be sure to check the boxes that are relevant to your return. From what i can see, you will check boxes 1-5 and box 14. 

• In the next screen, record the information in Boxes 2A and 2B. This should be the only taxable income on the k-1 to be reported in your return. don't record anything in Boxes 3-5.
• in Box 14, select B in the drop-down arrow and enter $565 as the amount.
• in the first screen, enter $5779 for gross income reported at Beneficiary level. Now enter $5384 as Gross income Sourced at Beneficiary level Foreign Sourced income. The middle column here should default to $395.  Again, this will have no impact on your tax return.
• Next screen should indicate this is passive income.
• For the beneficiary deductions., record $6068 for other deductions total and other deductions foreign source As $6068. The other deductions at US Source should default to 0.