How to enter foreign taxes paid on form 1120S in Lacerte
by Intuit• Updated 4 months ago
Starting in tax year 2021 the IRS updated the Schedule K-1 to include Schedule K-2 and Schedule K-3 to show International Transactions. This K-2 replaces the inputs prior tax years. See Generating the Schedules K-2 and K-3 in Lacerte for information on completing these new Schedules.
Follow these steps to enter foreign taxes for Schedule K, line 16f:
Go to Screen 27, Other Schedule K Items.
Scroll down to the Items Affecting Shareholder Basis section.
Enter the amount of Foreign taxes paid or accrued.
Go to Screen 27, Other Schedule K Items.
Locate the Foreign Transactions section.
Select the Foreign country from the drop down menu. (Schedule K, line 14a)
Complete all applicable information:
Gross income from all sources (Schedule K, line 14b)
Gross income sourced at shareholder level (Schedule K, line 14c)
Foreign Gross Income Sources at Corporate Level subsection (Schedule K, line 14d-14f)
Deductions Allocated & Apportioned at Shareholder Level subsection (Schedule K, line 14g-14h)
Deductions Allocated & Apportioned at Corporate Level subsection (Schedule K, line 14i-14k)
Foreign taxes paid (Schedule K, line 14l)
View the results on the Schedule K, Line 14a-q.
Verify the allocations to each shareholder on the Schedule K-1, box 14.
Note: The Lacerte program only allows input for one foreign country. If the S Corporation had income from, or paid or accrued taxes to, more than one country or U.S. possession, a statement is required to be attached. In order to correctly file the return, enter the aggregate amounts of all foreign transactions in Screen 27, Other Schedule K Items with the country as Various Then manually create separate statements for the Schedule K (use Screen 39,Notes) and each Schedule K-1 (use Screen 34,Supplemental Info. (per S/H)).
Lacerte Tax
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