Foreign tax credits and earned income FAQs (1040)

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This topic contains answers to common questions about Forms 1116 and 2555.

Form 1116 - Foreign tax credits

The following includes answers to common questions about Form 1116.

How does the tax application calculate gross income from all sources reported on Form 1116, line 3e?

How do I prepare a Form 1116 for an activity with foreign earned income excluded on Form 2555?

I entered a form and unit number in Screen 1116. The tax application did not calculate any foreign amounts, why?

How does the tax application calculate the AMT Form 1116?

How do I make the simplified foreign tax credit limitation election for AMT purposes?

How do I make the election for exemption from the foreign tax credit limitation?

How does the tax application calculate foreign tax credit carryover amounts?

My client has foreign capital gains and losses. Where do I enter those amounts?

Form 2555 - Foreign earned income

The following includes answers to common questions about Form 2555.

Where do I enter U.S. days during the tax year for clients qualifying under the bona fide residence test, and where do I enter travel information for clients qualifying under the physical presence test?

UltraTax CS printed a Form 2555 Foreign Earned Income Allocation Worksheet and a Form 2555 Deductions Allocable to Excluded Income Worksheet. What is the purpose of these worksheets?

I see force fields in Screen 2555-2 for wages, business income, and partnership income. How can I get the tax application to calculate these amounts?

My client's moving expenses related to foreign earned income were allocated over two years. How does the tax application make the determination to allocate moving expenses?

I have calculated an amount for exclusion of income earned in the previous year. How do I enter this information?

How are the deductions allocable to Foreign Earned Income calculated?

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