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March 10, 2025
Question

How do I get software to allow input for Form 1116 for Foreign Tax Credit due to Foreign Income Taxes paid that are related to Passive Income (cap gains)?

  • March 10, 2025
  • 1 reply
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    1 reply

    DaveF1006
    March 11, 2025

    To clarify, what kind of passive income is this?

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    March 11, 2025

    Hi Dave,

    Capital gains from a stock sale. No issues inputting the income but not able to get the Foreign Tax Pd into Sch 1116.

    AmyC
    March 17, 2025

    I assume you entered your income on the Form 1116 and are trying to get through the passive income section and get the tax entered. Let's continue through together.

     

    1. You selected  passive income, continue
    2. Select add a country - blue button
    3. Select the country from the drop down
    4. continue
    5. enter description of income and amount not already reported on the forms listed, continue
    6. explanation of expenses, continue
    7. enter any losses
    8. enter foreign tax paid
    9. select No - foreign tax paid on other income
    10. enter the taxes
    11. continue
    12. Enter any AMT amounts - AMT is on Form 6251
    13. Continue
    14. add any more countries or select done.

     

     

     

     

     

     

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