Enter foreign interest, dividends, and taxes reported on Schedule K-1
Follow these steps to enter passthrough foreign interest, dividends, and taxes reported on Schedule K-1.
note
If you're completing Form 2555 and Form 1116, don't follow these steps. Follow the steps to prepare Form 1116 with Form 2555.
- Go to the 1116 screen in the K1 1065, 1120S folder.noteIf you're entering the foreign interest, dividend, or tax information for a Fiduciary K-1, go to the 1116 screen in the K1 1041 folder.
- Enter a description.
- In the Form 1116 - General Information section, select aCategory of income, enter aDescription of income for line 1a, and any other necessary information.
- Select theCountry code/namein the Part I - Foreign Income/Loss section.
- Enter theForeign gross incomeand any other necessary information.
- In the Parts II and III - Taxes Paid or Accrued and Adjustments section, enter theDate foreign taxes paid or accruedand the amount paid or accrued.importantAmounts you enter in theIn US dollars - taxes withheld on:fields will transfer to Form 1116, Part III to calculate the Foreign Tax Credit.noteLine 3e of Form 1116, Part I, includes the total gross income from the return. If you're not including all of the Partnership or S-Corporation gross income on line 3e, use theGross income from all sourcesfield on the K1-4 screen to specify the gross income from the Partnership or S-Corporation.
