In past years, TurboTax has entered the Foreign Tax Paid figure from my 1099-DIV and I usually only had to look up the Foreign Source Income and enter the Total Figure on 1099-DIV in Forms. Well, this year, there's a Form 1116 showing a $0 Tax Credit since it hasn't been filled out.
Apparently, the figures were not transferred from the 1099-DIV. I entered the Foreign Income and Tax Paid manually in the 1099-DIV in TurboTax (Desktop Edition.)
Form 1116 is not required for a Foreign Tax Credit of $570 if I understand correctly. I have deleted the Form several times but it keeps showing back up again.
I don't want to complete the Form since it isn't necessary and I have no idea how to do so or what any of the language means. Fidelity is responsible for my investments so all I know is what I see on my 1099-DIV which should have transferred into TurboTax when I imported the data.
How can I get rid of that Form 1116? Apparently my 1099-DIV did not provide the data that a Form 1116 requires.
And NO, I do not want the Tax Deduction on Schedule A, I want the Tax Credit.
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if the total of FTCs is $300 or less ($600 married filing jointly) no 1116 is needed. (the FTC can only be from passive income like dividends and interests other FTCs require their own 1116 and the $300/$600 rule no longer applies.
I don't think Turbotax ever automatically completed the 1116 if the form was required.
Nevertheless this year you must complete the form in "Estimates and Other Taxes Paid" section under "Deduction and Credits"
I'm not sure why a Foreign Tax Credit would fall under "Estimates (?) and Other Tax Credits" but I guess they're throwing it into one category. However, from the Forms point of view, I had to fill in the figures for the 1099-DIV, even though it should have been provided by Fidelity.
My concern was that the empty Form 1116 would override the Tax Credit I'm due, but hopefully the Tax Credit will show up when I reach the Credits Section. TurboTax really doesn't allow me to jump around the way I prefer.
I am stuck on my IRA Recharacterization and it won't let me continue so I think I'll just have to back out of it until I confirm something with Fidelity tomorrow.
I guess since it's my first day this year, I'm just remembering all the frustrations I have with TurboTax. This happens every year but it seems they have added more issues for the Users. Glad I started as soon as I got my 1099s this week.
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