Form 116(Foreign tax pd) within form 1041. Is there an option? There is on form 1040. Pro Series tech support says form 1116 is mandated in order to receive any credit. Maybe its just my software. Does your software mandate form 1116 on form 1041?
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It's covered in the 1116 instructions.
You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 21 of the form) will not apply to you. This election is available only if you meet all of the following conditions.
All of your foreign source gross income was “passive category income” (which includes most interest and dividends). See Passive Category Income, later. However, for this purpose, passive income also includes (a) income subject to the special rule for high-taxed income described later, and (b) certain export financing interest.
All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-1 (Form 1065), Schedule K-1 (Form 1065-B), Schedule K-1 (Form 1120S), or similar substitute statements.
Your total creditable foreign taxes are not more than $300 ($600 if married filing a joint return).
This election is not available to estates or trusts.
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