I am using a tax program to do a 1041 trust tax return. The trust has some tax exempt interest of 66 ordinary dividends of 3177 qualified dividends of 2759 section 199a dividends of 59 foreign tax paid of 106 The program computes a tax owned of 93. For some reason, none of the foreign tax paid is not being used, but is being carried forward. Any idea why?
I completed Form 1116 as best as I could. A 1041 1116 is a lot harder to do than a 1040 1116.
Finally printed the 1116 (instead of just the worksheets). It appears that the program has a design flaw in that it carries over the foreign tax paid, but not the qualified dividends, to 1116 from the mutual fund information.
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