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Level 2
August 20, 2025

Is there a way to link Schedule E royalty income from a foreign source to form 1116

  • August 20, 2025
  • 1 reply
  • 4 views

When I handle foreign income on a Schedule C, there is a sub-section to link to form number created when I do inputs into Form 1116. When I run the same scenario utilizing schedule E (because it is a royalty payment) I am not able to populate the foreign tax credit, regardless of the entry made that I had foreign taxes paid. Is there a path for linking the Schedule E to form 1116 or is this commonly handled on a Schedule C even though the income is a royalty?

    1 reply

    George4Tacks
    Level 15
    August 20, 2025

    My guess is that it would depend upon the software you are using. 

    Answers are easy. Questions are hard!
    Level 2
    August 21, 2025

    Lacerte