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Get your taxes done using TurboTax
It depends. Sounds like you are trying to do this the hard way and are working on forms. I suggest an easier approach because you may not be able to efile if the forms aren't filled out correctly. First, completely undo what you have done and let's start over. Here is how to approach this step-by-step.
- Open up your Turbo Tax Software
- Go to Federal Taxes>Interest and Dividends>Dividends on 1099 DIV
- When you record your 1099 DIV, make sure you check the box., My Form has info in other boxes.
- Record the information on the DIV and be sure to record the foreign tax-paid amount in Box 7.
- Continue to a screen that says "Tell Us About your foreign Dividends". Here is where you would record your foreign dividends received in which country they were received from. This information is disclosed in a disclosure statement that came with your 1099 DIV statement.
- Now most of the heavy lifting is done. You can now claim your foreign tax credit on Form 1116.
To claim the foreign tax credit.
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
As you begin working in the section, the program will recognize you have already made an entry regarding foreign taxes in your 1099 DIV.
- It will first ask you to verify where the dividend income came from.
- Next screen you will select report income in the radio button
- In the next screen, put a checkmark in the box that says select
- The next screen will verify the amount of foreign-source income the foreign tax was derived from.
- After this is done, you are done reporting foreign income. If it asks you if you wish to review your entries, you can say no.
- Next it'll ask you making a simplified election for AMT. if you made this in previous years, you check the box. Usually if your only income has been passive in previous years, you may have made this selection. You may need to look at last year's return to verify this.
- Keep navigating the screens. When a screen appears telling you to choose an income type, choose passive income.
- Press done in the next screen.
- Press Continue through the next screens that appear until you reach Foreign Tax Credit Carryovers. Here is where you will report Carryovers from previous years.
- Next screen will ask if adjustments need to be made. Select no if you aren't aware of any adjustments.
- Next will be a screen that shows AMT carryovers. If you have had AMT carryovers from years before, this is where you will record this information.
- Continue through the screens until you are done.
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March 13, 2025
2:24 PM