Question

Error on form 1116 - but I don't want to report accrued tax, only paid?

Forum|Forum|7 years ago
June 3, 2019
3 replies
0 views

I report foreign tax accrued on my K-1 and foreign tax paid on my 1099-DIV. I want to claim credit for the paid, but not the accrued, tax. Error check indicates not associating the taxes from the K-1 with the form 1116 is an error. Should I ignore the error, or is there another fix? Thanks for any help.

TurboTax Premier Mac

R

rogge1722

Employee

On the k-1 are there any taxes paid in addition to the accrued?

M

metta43Author

No, only accrued.

R

rogge1722

Employee

The simplest expedient is to bring up the k-1 and delete the entry for accrued tax paid. This way TT doesn't see the k-1 in the FTC section and thus no errors.

The only benefit from the k-1 is if it has a considerable amount of passive category income. When incorporated into the f1116, it will inflate the foreign tax credit limit which allows more credit to be used and reduce possible carryovers. If it's worth it, after deleting the entry in the k-1's accrued box, you can insert $1.00 into the k-1's foreign tax paid box. This forces TT to run it thru the FTC interview After the f1116 is completed, bring the f1116 up on the screen and override the $1.00 with a zero.

M

metta43Author

Thanks --- but this worries me in that I am reporting an incorrect number on my K-1. Won't that be a "real" error that TT won't flag but auditable? [As for the passive income amount, it is not considerable (not worth the second step described)].