Can I deduct taxes paid to Spain, where do I find ...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
clavel94
New Member

Can I deduct taxes paid to Spain, where do I find form 1116?

How do I get TurboTax to include form 1116?
2 Replies
DJS
Level 7
Level 7

Can I deduct taxes paid to Spain, where do I find form 1116?

You may not need to file Form 1116, but if you do then this is how:

 

  • Federal Taxes
  • Deductions and Credits
  • Estimates and Other Taxes Paid
  • Foreign Taxes
  • Follow the instructions

 

 

Election To Claim the Foreign Tax Credit Without Filing Form 1116

You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 21 of the form) won't apply to you. This election is available only if you meet all of the following conditions.

 

  • All of your foreign source gross income was "passive category income" (which includes most interest and dividends). See c. Passive Category Income, later. However, for this purpose, passive income also includes (a) income subject to the special rule for High-taxed income described later, and (b) certain export financing interest.

  • All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-1 (Form 1065), Schedule K-1 (Form 1120-S), or similar substitute statements.

  • Your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return).

 

This election isn't available to estates or trusts.

If you make this election, the following rules apply.

  • You can't carry over to or from any other year any foreign taxes paid or accrued in a tax year to which the election applies (but carryovers to and from other years are unaffected). See the instructions for Line 10, later.

  • You are still required to take into account the general rules for determining whether a tax is creditable. See Foreign Taxes Eligible for a Credit and Foreign Taxes Not Eligible for a Credit, later.

  • You are still required to reduce the taxes available for credit by any amount you would have entered on line 12 of Form 1116. See the instructions for Line 12, later.

 

To make the election, just enter on the foreign tax credit line of your tax return (for example, Schedule 3 (Form 1040), Part I, line 1) the smaller of (a) your total foreign tax, or (b) your regular tax (for example, the total of Form 1040 or 1040-SR, line 16, and Schedule 2 (Form 1040), Part I, line 2).

 

Answers are correct to the best of my ability but do not constitute legal or tax advice.
**If this post is helpful please click on "thumbs up"**
GloriaL
Expert Alumni

Can I deduct taxes paid to Spain, where do I find form 1116?

You can choose to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction on your federal tax return.

 

To choose the foreign tax credit, you generally must complete Form 1116 and attach it to your U.S. tax return. Nevertheless, you may qualify for an exception that allows you to claim the foreign tax credit without using Form 1116.

 

To complete Form 1116 in Turbo Tax:

  • Federal Taxes
  • Deductions and Credits
  • Estimates and Other Taxes Paid
  • Foreign Taxes
  • Follow the instructions
Dynamic AdsDynamic Ads
v
Privacy Settings