foreign source amount & form 1116

Forum|Forum|1 year ago
March 24, 2025
2 replies
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When I run smart check at the end of the sections, I get 2 different types of flags - all related to foreign source income to correct.
1)" Schedule B - 1099-Div <xxxxx brokerage company> foreign source amount must be entered" - and it shows a 1099 DIV worksheet Box 7 that contains foreign tax paid as in my 1099 DIV form- and asking me to fill box 7D - total foreign source income - this is only mutual funds inv. What do I enter ? 0 ?

2) "schedule B-1099-Div <xxxxx brokerage company>foregin tax schedule A box or form 1116 copy should be entered. return to the place to correct the entry" - and a checkbox with "foreign tax schedule A box " - it shows all the info transferred from brokerage, when I click 7b in the worksheet, it shows a short cut that takes me to another screen - form 1116 (COPY1) to link - " do I link this ? this form doesn't open or no content what am I supposed to do ?

thanks

Mike9241

Level 15

the mutual fund should report to you the foreign source income. A foreign-based fund may have non-foreign-source income. There's no place on a 1099-div to report this so the fund should send you a tax reporting statement or some other document. Call them. you can't use zero because then you won't get the FTC.

when entering a 1099-div or int with a FTC and you file form 1116, the first 1099 should be linked to column A of the first 1116. the 2nd should be linked to column B and so on. if there are more than 3 you need a second form 1116 so the 4th 1099 would again be linked to column A

note that if you are single, your total passive FTC is $300 (it's $600 if married filing jointly) or less you do not need form 1116. in this case on each 1099 only enter the FTC nothing else about the FTC.

Mike9241

vs0001Author

Level 2

thank you

when you refer here as "tax reporting statement" , is there any form # associated with this when requesting the brokerage ? I went through the 1099-DIV/INT sent by them, there is a section called "mutual fund and supplemental information" that shows " FOREIGN SOURCE INCOME PERCENTAGES" against some of the mutual funds with a % number - is this % of the fund amount invested or end of 2024 year end ? is this the $ amount I calculate & total for all the funds (about 5 or so) and use this to enter ? or you refer to an entirely separate statement that I need to request from brokerage asking for absolute $ number on the source income ? thanks for any help.