A credit is not allowed for paid/accrued taxes that are imposed by certain sanctioned countries. Income derived from each sanctioned country is subject to separate foreign tax credit limitations. Therefore, you must file separate 1116 forms for each sanctioned country. Our program allows only one Form 1116 to be included in your tax return.
If the country you paid taxes to is no longer a sanctioned country at the end of the tax year, refer to Pub. 514 to determine how to calculate the credit.
Where do I enter Section 901(j) income?
To enter into the program, please follow the steps listed below.
- Select Federal from the navigation bar
- Select Deductions from the same navigation bar
- Choose to select your forms, then press continue
- Select Credits
- Select Foreign Tax Credit Form 1116
- Choose Section 901(j) income
Refer to Form 1116 Instructions for more information.