Get your taxes done using TurboTax

Since everything was already distributed and reported in Miscellaneous income, you will not want to create another income item like a1099 INT. 

The income reported under miscellaneous income is not linked to a Foreign Tax Credit section like your INT/DIV income. You must manually record this information. 

1. Now go to Go to Federal > Deductions & Credits>Select Foreign Tax Credit (under Estimates and Other Taxes Paid).
2. After going through the initial interview sections, the program will recognize your linked DIV/INT entries. After checking a few checkboxes and reporting the income, you are done reporting the income, that part of the Foreign Tax Credit is complete. Now you need to enter information about the 25% witholding from the NR4.
3. After completion, you may be asked a question such as Other types of foreign income" and you've already entered it via the 1099-INT or DIV, say NO.
4. This will prompt the program to report another foreign tax credit.
5. In a screen that says completing Form 1116, press continue at the bottom
6. Continue until you see Choose an income Type.  Choose passive income.
7. Under country summary, Canada should already be listed.  Select edit
8. Under Gross income, list the amount of earnings that is listed on the NR4
9. Continue through the expenses and Foreign Losses
10. Now in Foreign Taxes paid--Canada, enter the amount of Foreign Taxes paid.
11. Continue through until you are done with this section.

When everything is completed, your foreign taxes paid will now be reported accurately from your interest, dividends, and NR4 and be reported as passive category income on Form 1116. 

One last note, when TurboTax mentioned ordering, it meant that the largest foreign income item should be listed first. The problem is if the NR4 item was the largest, it should have been listed first. The issue is that your DIV/INT income was already reported and ready to be linked in the Foreign Tax credit and the NR4 income was added after. 

If you have any error messages regarding this you may need to delete the 1099 DIV/INT.  Report the NR4 information first in the Foreign Tax Credit section and then re enter your 1099 DIV/INT.  After reporting this, go to your foreign tax credit session and revisit the linked DIV/INT to complete this section.

Don't do this, though unless you have issues.