1099-B isn't applicable to foreign capital gains, so you'll want to remove it from your return. Here are links that explain how to delete forms:
You may be eligible for the Foreign Tax Credit.
You'll can report foreign capital gains and claim the Foreign Tax Credit on Form 1116.
Here is an IRS link about Form 1116.
Here's how to get to Form 1116 in TurboTax:
- Make sure you've entered all your foreign income.
- From within your return, search for foreign tax credit and select the Jump to link in the search results.
- Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
- Follow the instructions to get the credit or deduction.
There's a deduction available as well as well as a credit but in most cases, taking the credit works out better. We'll help you decide which one's best for you when you go through this section.
If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.
You may also be required to file two special forms with your 2020 tax return:
FBAR (FinCEN Form 114)
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. The name of the form to file If you have any questions or require technical assistance using the BSA E-Filing system, you may call them at 866-270-0733; or if calling from outside the United States, 313-234-6146.
Report of Foreign Bank and Financial Accounts
Foreign Accounts Tax Compliance Act (FATCA)
Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. The IRS receives information about foreign assets on Form 8938 on your federal tax return.
You must file the FBAR electronically through the Financial Crimes Enforcement Network’s BSA E-Filing System. You don’t file the FBAR with your federal tax return.
Here is an IRS article that explains the comparison between FATCA and FBAR requirements.
