I paid >$2,500 in foreign taxes, so I am submitting form 1116. I have multiple 1099-DIV corresponding to different brokers and individual stocks. One account holds a Canadian stock that paid dividends and taxes paid for those dividends. Another account holds stocks from Canada, Denmark, and RIC (mutual fund) that also paid dividends. For this 1099-DIV, I've checked column A (line 6c) which corresponds with Canada in form 1116. I've also selected Various (line 7). This generates an error, "Box 7 does not match the country name on the selected Form 1116".
In the form 1116 Wks, I've setup column A = Canada, column B = Denmark, and column C = RIC. Using supporting details, I've listed individual taxes paid for Canadian dividends. I also obtain an error for line 1h, column A, "Qual Div and LT Cap Gains should have a value of at least --- based on 1099-DIV worksheet linked to this country.
It appears that T-tax expects columns A, B, C to correspond with brokers (1099-DIV) but I interpret columns to correspond by country instead. It really doesn't matter, so yes I could change this around to suit T-tax and shouldn't change the final amount. I could also submit taxes as-is because I think either way is valid. However, this highlights a BUG in T-tax software in that I was able to pay $30 for efile in my state, BUT then T-tax wouldn't efile until this error was resolved. The software should not take money for efiling until return is ready to file. Yes, I ran final checks and ignored the errors, but did not realize that filing is not allowed with errors. Prior years software allowed waiving errors, but that feature has been dropped. I now must choose between redoing the tax forms or post-mail the return and ask for my $30 back from T-tax.
