How do I report a Foreign Tax Credit?

It depends. You report your K-1 (1041) first. After you report your K-1, you next claim the foreign tax credit in your return and the result of your excellent reporting will produce a Schedule 3. Everything is handled in the program if you report everything properly.

1. Log into turbo Tax
2. Go to federal>income and expenses>S-corps, Partnerships, and Trusts>show more
3. Schedule K-1>start
4. After you finish reporting the K1 information about the 1041 K1, then you will go to:
5. Federal>Deductions and Credits>Estimates and Other Taxes Paid>foreign tax credit
6. Here you will answer questions about your foreign tax credit.  If some of the information is on the K-1, it should populate on the form.  Answer each question completely because once you do, your foreign tax credit will appear on Schedule 3, line 1 and also 1040 line 20 unless there are other credits you reported beside the foreign tax credit.
7. note: The foreign tax credit is a non-refundable credit meaning that it only reduces your tax liability on your return to zero. If it is not completely used up this year, the excess will be carried over for ten years or until it is used up.