Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Deductions

Enter foreign taxes paid as a deduction or credit

Follow these steps to take foreign taxes paid as a deduction, or to claim the tax as a credit.
  1. Do 1 of the following to take the foreign tax as a deduction:
    • Leave the
      1116
       screen blank and enter the tax in the
      Taxes, not entered elsewhere
       field on the
      Deduct
       screen in the
      Deductions
       folder.
    • Enter the information on the
      1116
       screen in the
      K1 1065 & 1120S
       folder,
      K1 1041
       folder, or
      Credits
       folder. Enter
      X
       in the
      Report all foreign tax as a deduction
       checkbox on the
      OthCr
       screen in the
      Credits
       folder.
  2. To take a foreign tax credit if the type of foreign income is interest or dividends, enter the tax information at the same time you enter income information in the
    Interest income
     and
    Dividends
     fields on the
    Income
     screen in the
    Income
     folder.
  3. The foreign income and tax information you enter in these statement windows transfers automatically to the
    1116
     screen. Don't enter this information again on the
    1116
     screen. If the type of foreign income isn't interest or dividends, or you decide not to use the statement windows on the Income screen, enter the information on the
    1116
     screen in the
    Credits
     folder.
  4. If the type of foreign income is from a pass-through activity, enter the information on the
    1116
     screen in the
    K1 1065 & 1120S or K1 1041
     folder.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close