Entering foreign tax credit or deduction

You can enter the foreign tax credit or the foreign tax deduction. Do not enter both amounts.

Entering the foreign tax credit

Enter the credit for taxes imposed by foreign countries and U.S. possessions per IRC (Internal Revenue Code) Sec 27 for purposes of the regular tax in the Credits > Other Credits tab > Foreign tax credit field. Enter the amount after all limitations except the tax liability limitation. The credit will automatically be limited by tax liability in the Allowed Foreign Tax Credit field.

Entering the foreign tax deduction

Enter the amount of foreign taxes paid in the Deductions > Deductions Pg 1 tab > Foreign taxes field. 

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