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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

My client paid foreign taxes on interest / dividends. I know that I must enter the interest / dividend income in Screen B&D (or Screen Broker). Do I have to re-enter the foreign income and taxes in Screen 1116?

Answer

No. The interest and dividend information entered in the statements attached to the Interest income and Dividend income fields on Screen B&D (or Screen Broker) automatically generate a Screen 1116 using the data entered in the foreign columns.

If the foreign columns for addresses are not visible in the statements, you can click the globe  button on the toolbar or select Foreign Columns from the Column menu. To permanently enable the foreign columns, choose Setup > User Preferences > Data Entry tab and mark Show foreign columns in statements.

Also, select the foreign country or possession code and name in Screen B&D (or Screen Broker), or indicate the foreign income was from a mutual fund or other regulated investment company (RIC). If the foreign data is entered accurately in the Interest income or Dividend income statements, a Screen 1116 automatically completes with all the information necessary to calculate the Form 1116. In Screen 1116, you can edit existing information or add more information if necessary.

Related topic: Foreign tax credits and earned income FAQs (1040)

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