User's Manual - Drake Software

Passive and Investment Income (1099-DIV, etc.)
Drake Software User’s Manual
• Ability to associate information from an INT or DIV screen to an 1116 screen
• Ability to suppress Form 1116 if it is not required for the return
• Ability to open the 1116 screen in the program via a Form 1116 link
Foreign Tax
Credit Data
The INT and DIV screens include a section for Form 1116/FTC information.
Figure 5-13 shows this section as it appears on the DIV screen.
Figure 5-13: Form 1116 section of DIV screen
If data is entered in this section of the DIV or INT screen, Form 1116 is generated
automatically. Data entered here does not have to be re-entered on the 1116 screen. In
fact, if amounts are entered on both screens, the program combines the two amounts
and prints the total on the return.
Associating
Data with the
1116 Screen
Because the INT/DIV screens include the most commonly used Form 1116 fields, and
because Form 1116 is generated if these fields contain data, it may not be necessary to
enter anything onto screen 1116. If, however, a return has a less-common foreign
income factor, such as a carryover, you must enter that data on screen 1116.
You can associate the DIV and INT screens with an 1116 screen so that the generated
Form 1116 incorporates the applicable data from all applicable screens. To associate
the Foreign Tax Credit information in a DIV or INT screen to an 1116 screen:
Screen code: 1116
1. Complete the Form 1116/FTC Information section of the DIV or INT screen.
(See Figure 5-13.)
2. Enter a number into the FTC field of this section. (See Figure 5-13.)
3. Open the 1116 screen to be associated with the DIV or INT screen.
4. Type the FTC number (from Step 2) into the FTC field (Figure 5-14).
Figure 5-14: FTC field at top of 1116 screen
The program uses this “FTC number” to associate the 1116 screen with the other
screens and calculate the correct information for Form 1116.
Suppressing
Form 1116
By default, Form 1116 is generated with the return if any data is entered into the Form
1116/FTC Information fields. If these fields include data but a Form 1116 is not
108 Tax Year 2012