This article will help you enter foreign taxes paid (or withheld) to calculate the foreign tax credit on Schedule 3, line 48.
Before you start:
- For Lacerte to calculate the credit for foreign taxes paid, an entry under the U.S. Dollars section must be made.
- Lacerte won't automatically convert any amounts entered as Foreign Currency.
- Lacerte doesn't currently support carrybacks of foreign tax credits.
Depending on the type of income, there are four methods to enter foreign tax credit information:
To calculate a credit for taxes paid to a foreign country on Form 1116 from foreign transactions reported on a Schedule K-1, click here.
To calculate a credit for taxes paid to a foreign country on Form 1116 from other income, like a 1099-B: