User's Manual - Drake Software

Foreign Tax Credit
Drake Software User’s Manual
Foreign Tax Credit
If the amount of foreign tax credit (FTC) is less than $300 ($600 for MFJ) and no
Form 1116 is required, you can enter this amount directly into the Foreign Tax Credit
field on screen 5. (See Figure 5-35.)
Figure 5-35: Use screen 5 to enter FTC if totals are less than $300 ($600 for MFJ).
For greater amounts, use the FTC sections of the INT and DIV screens to enter data
regarding foreign interests and dividends, respectively, or use the 1116 screen.
FTC Code
If an 1116 screen is to be linked with an INT or DIV screen (for foreign interest or
dividends), enter a number into the FTC box of the 1116 screen. Enter this same number
on the INT or DIV screen. For more on entering foreign interests and dividends,
see “Foreign Interest and Dividends” on page 107.
Required Statements
A statement may be required with Form 1116. Use the SCH screen to attach a required
statement. On the SCH screen, select the applicable 1116 item from the Type of
Attachment/statement number and title drop list
If the return receives reject code 0973 on Form 1116, a statement must be entered as
statement number 98, 99, or 100 on the SCH screen. This statement must indicate how
the foreign currency was converted into U.S. dollars. For information on adding
unformatted statements in Drake, see “Unformatted Schedules” on page 189.
Child and Dependent Care Expenses Credit
Screen code: 2441
Where to Enter Data
No Income for Spouse
Use the 2441 screen, accessible from the General tab, for Form 2441, Child and
Dependent Care Expenses.
Enter data on both the 2441 screen and on screen 2 for each dependent for whom
expenses were incurred.
To qualify for the childcare credit, parents must have earned income, be full-time students,
or be disabled. If a spouse does not have income but is disabled or a student,
then enter $250 (one child) or $500 (two or more children) for each month the spouse
142 Tax Year 2012