Unkown entry on Form 1116

[hcheskin]

In my return Form 1116 Line 1a refers to an amount "From 1099s". However, my return doesn't include form 1099s. In addition, I cannot see how the transferred amount is derived. Is this a TurboTax bug?

[ThomasM125]

Line 1a on Form 1116 would be your foreign income. It would likely consist of Interest, dividends, capital gains,  self-employment or other income. All of those would likely involve reporting on a Form 1099, although not necessarily. So, the reference to Form 1099 is not absolute, it is only a suggestion of how the income may have been reported to you.   

The foreign income and associated tax would be entered in the Deductions and Credits section of TurboTax, then Estimated and Other Taxes Paid, then Foreign Taxes. It may also be the result of foreign taxes reported in prior years whose unused portion is transferred into the current year. 

[JamesG1]

Is it possible that the amount carried forward from a previous year?

"From 1099's" generally refer to:

• IRS form 1099-INT Interest income,
• IRS form 1099-DIV Dividend income and
• IRS form 1099-B Proceeds from Broker.

What is the nature of the income for which you are seeking the foreign tax credit?

[Howward]

JamesG1,

I'd interpreted "From 1099s" as "From 1099S", which is not one that I received this year. It makes sense, as you did, to interpret it as "From 1099's".  I did receive several 1099 DIV's and INT's that included foreign earnings and paid taxes. I just can't slice and dice the reported amounts to add up to the amount listed on line 1a.  I'll check once more, but if I can't make it add up, I'll assume that TurboTax parsed the 1099's correctly.

Thanks for your help.

[DawnC]

You may have multiple 1099 forms with foreign income amounts.   If you are using the desktop software, you can view the source of your foreign income on Form 1116.  

Do you have multiple categories of foreign income?    Reporting Income with Form 1116

[Howward]

DawnC,

Thank you for your response.

I've checked my 1099's and found that the amount transferred to Form 1116 was from international ETFs/Funds that I own. However, dividends from three individual foreign stocks that I hold (Canada, Netherlands, Panama) were not transferred to Form 1116. Can I assume that this is correct?

Howard

[ThomasM125]

There would have to be entries in boxes 7 and 8 on your dividend statements for that revenue to be considered foreign income and for the tax to show on Form 1116. Is it possible no foreign taxes were paid on the income as reported in box 7 of the dividend statements?