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New Member
posted Feb 23, 2021 4:59:20 PM

I still did not understand how to report a interest on investments earned in another country and get the FTC. have already discussed with an agent CASE #xxxxxxxxx.

I reported my foreign interest (1099-INT) but reporting form 1116 for foreign tax credit I was not offered an input to inform taxes already paid. Please advise

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3 Replies
Expert Alumni
Feb 23, 2021 5:31:25 PM

To claim the foreign tax credit, here are the steps: 

 

In TurboTax online,

  • Open up your TurboTax account and select Pick up where you left off
  • At the right upper corner, in the search box, type in "foreign tax credit" and Enter
  • Select Jump to foreign tax credit
  • Follow prompts
  • Choose the Income Type, select "Passive Income"
  • On screen, "Country Summary", add a country to continue
  • On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount
  • Follow prompts to enter foreign taxes if you did not enter it on 1099-DIV
  • See image below.

 

 

 

 

If you pay taxes on dividends to both foreign and US government, you may claim a foreign tax credit on your taxes.  

Returning Member
Apr 19, 2021 3:16:09 PM

Thanks My income type is "Certain income re-sourced by treaty" for the interest income but the FTC is being ignored. TT seems to only accept the FTC on 1099-DIV. 

Expert Alumni
Apr 21, 2021 6:06:21 PM

It depends. How much was the FTC. If $300 or under, it doesn't require a 1116. the reporting on the 1099-DIV is sufficient.