Foreign Tax Credit

Forum|Forum|5 years ago
April 24, 2021
1 reply
15 views

I have a client that does not qualify for the foreign income exclusion, so I am trying to claim a foreign tax credit on Form 1116 using Pro Series Basic. I was wondering if anyone can help me.. All the client has for foreign income is $25,000 (US dollars) in wages and paid foreign income tax of $3,650 on that income. I used the 1116 worksheet but no credit is being generated. I am a newbie to Pro Series so if anyone can offer me steps to get the credit based on the facts above I am eternally grateful!

thanks so much

Dakotasteve

ProSeries Basic

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Best answer by Dakotasteve

Thanks so much DTNY07!.. The key was I had only entered the taxes paid in US dollars, when I added the amounts in foreign currency the Basic Series 1116 form worked for me....I had also neglected to check the "General Category" (wages and salary income) box d on the Foreign Tax Credit Worksheet used to report foreign income and taxes paid related to salaries and wages! thanks again for your help...

D

DTNY07

Level 6

Go to quick entry mode

I don't know Pro Series basic #s, but in professional

73 is the foreign tax credit section

You have to enter the tax both on the US dollars and foreign currency sections

I don't know why you have to put in both. But, I've had Pro Series since 2006

Pick the other taxes part, since this is for wages

Put the amount and that it is for wages

It should work then

D

DakotasteveAuthorAnswer

Level 2

Thanks so much DTNY07!.. The key was I had only entered the taxes paid in US dollars, when I added the amounts in foreign currency the Basic Series 1116 form worked for me....I had also neglected to check the "General Category" (wages and salary income) box d on the Foreign Tax Credit Worksheet used to report foreign income and taxes paid related to salaries and wages! thanks again for your help...

D

DTNY07

Level 6

I have been using Pro Series since 2006. I definitely made those mistakes as well back then. Especially having to list the tax on both the US and foreign sides

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