Foreign Tax Credit (Form 1116)

Forum|Forum|4 months ago
February 15, 2026
1 reply
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If one 1099's shows Foreign Taxes Paid to 4 foreign countries, how do I fill out Form 1116.

And if I have two 1099s that paid foreign taxes to the same foreign country, how do I fill out Form 1116?

Thanks in advance.

Best answer by MelindaS1

In order to populate the specific-country data for income and taxes paid, you may need to create entries for additional dummy 1099-DIV's that only include data of foreign income and foreign tax per each country (so that your U.S.-source income is not double-counted or quadruple-counted), until all 4 countries have been entered. This is a common workaround across many tax software vendors. You might want to reference this Community conversation as a starting point.

For the 2 1099's with foreign taxes paid to the same country, enter them both as usual, and TurboTax should collate them together on Form 1116 correctly. Tag me @MelindaS1 if you have issues with the final computation.

Learn more:

TurboTax FAQ - Where do I enter the foreign tax credit (Form 1116) or deduction?

IRS Pub. 514 - Foreign Tax Credit for Individuals

M

MelindaS1Answer

Level 6

In order to populate the specific-country data for income and taxes paid, you may need to create entries for additional dummy 1099-DIV's that only include data of foreign income and foreign tax per each country (so that your U.S.-source income is not double-counted or quadruple-counted), until all 4 countries have been entered. This is a common workaround across many tax software vendors. You might want to reference this Community conversation as a starting point.

For the 2 1099's with foreign taxes paid to the same country, enter them both as usual, and TurboTax should collate them together on Form 1116 correctly. Tag me @MelindaS1 if you have issues with the final computation.

Learn more:

TurboTax FAQ - Where do I enter the foreign tax credit (Form 1116) or deduction?

IRS Pub. 514 - Foreign Tax Credit for Individuals

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

A

aptiva4tt17Author

Level 4

Thanks for the link to last yr's postings. It is what I needed.

I have a follow-up question. I think there is a simple way and a complex way to claim the Foreign Tax Credit. Does TT handle both options? If yes, how do I get to the complex way?

P.S. How do I "Tag me @MelindaS1 if you have issues with the final computation. " ? When I click on @MelindaS1, it leads me to a web page with all your postings.

M

MelindaS1

Level 6

If my understanding is correct, and you're referring to the 'Election to Claim the Foreign Tax Credit Without Filing Form 1116' (see: IRS instructions) as the simplified method, then you would follow the navigation steps below to instead populate Form 1116:

TurboTax FAQ - Where do I enter the foreign tax credit (Form 1116) or deduction?

Enter all your foreign income in the Wages & Income section if you haven't already

Navigate to the foreign tax credit section:

TurboTax Online/Mobile: Go to the foreign tax credit screen under Deductions & Credits

TurboTax Desktop: Search for foreign tax credit and select the Jump to link or,

Go to Federal Taxes.

If asked, How do you want to enter your deductions and credits?, select I'll choose what I work on.

Under Estimates and Other Taxes Paid, select Start or Update next to Foreign Taxes.

3. When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation

4. If you select Take a Credit:

Select Continue on the next screen, then select No to fill out Form 1116.

The instructions indicate that the software will then use your inputs to determine if filing Form 1116 is required; you can check Forms mode in the upper-right on TurboTax Desktop to verify that Form 1116 is attached to your federal return (left-hand window).

Glad the Community link was of help! And don't worry, you're doing the tagging thing correctly.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"