Form 1116 - Foreign Bank Interest Income

Forum|Forum|4 years ago
February 18, 2022
4 replies
6 views

I past years, our accountants have prepared our taxes and completed Form 1116 for foreign interest income and taxes paid. There are also carryover tax credits from previous years. Based on reading past discussions in this forum, the approach seems to be to enter foreign interest income as 1099 income and show the taxes paid as foreign taxes. But because the interest is > $500, it seems to zero out the foreign taxes paid amount and I cannot seem to find a way to record that.

Any suggestions or guidance would be appreciated - thanks for your help.

rakeshg1Author

Level 2

EDIT: Foreign taxes paid were > $600 so I believe Form 1116 is required?

ThomasM125

Level 15

Yes, form 1116 is required if the taxes are over $600. You can report the foreign taxes separately in the Foreign Taxes section of TurboTax. Just go to Deductions and Credits, then Estimates and Other Taxes Paid, then Foreign Taxes.

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