Foreign sourced lump-sum distributions from a pension plan may qualify you to take a foreign tax credit if you paid or accrued taxes. If you received the lump-sum distribution for a different year, you may need to use a special formula to figure the tax.
See Pub. 575 for more information.
Where do I report my lump-sum distributions?
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 Lump-sum distributions
Refer to Form 1116 Instructions for complete instructions.