Alva124
Level 2
05-10-2021
06:33 PM
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Hi,
I received a total wages from the UK and Paid the taxes on it. When entering the information on the Screen 35, Foreign Tax Credit (1116) Lacerte I noticed that the refund went up significantly but the AGI did not.
I entered the total wages under "Other Foreign Source Income" and the total tax paid in the "Foreign Taxes Paid" Section.
Am I doing this right? The fact that the AGI is not increasing makes me think I am doing this wrong and Lacerte is only picking up the Tax Credit? Do I have to add the the total wages on screen 10-Wages?
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sjrcpa
Level 15
05-10-2021
09:33 PM
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Yes you have to report the wages as taxable wages.
Foreign tax credit only applies to mitigate the US tax on income that is also taxed by another country.
The more I know the more I don’t know.
