1041-US: Form 1116 is not prepared when data is entered on Screen 1116 (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

Question

Why is Form 1116 not prepared even though information is entered on Screen 1116?

Answer

If 100 percent of the current-year foreign tax credit is allocated to the beneficiaries (on a simple trust, on a final return, through data entry on Screen Allocate in the Allocation folder, or in View > Beneficiary Information > Federal tab), Form 1116 is not prepared. Only fiduciary amounts are reported on Form 1116. All current-year foreign income and tax are reported on the beneficiary’s Schedule K-1.

To prepare Form 1116 for a simple trust and retain the credit at the trust level, mark the Final return or simple trust: Allocate credits, estate taxes, or state withholding between trust and beneficiaries checkbox on Screen Allocate in the Allocation folder.

Note: If Form 1116 still does not complete, verify that there is no credit percentage entered for foreign tax credit in View > Beneficiary Information > Federal tab.

Related topic: 1041-US: Form 1116 FAQs

Share This