I only have $4.00 in foreign tax credit on my 1099-DIV. TT is forcing me to upgrade to complete form 1116, however according to the IRS website I don't have to complete form 1116 if all of the FTC was reported on the 1099-div (which it is) & meet the other requirements (which it does). How can I still proceed with filing basic edition if it won't let me but the IRS says I cna claim the FTC without form 1116?
IRS language below:
You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 23 of the form) won't apply to you. This election is available only if you meet all of the following conditions.
All of your foreign source gross income was “passive category income” (which includes most interest and dividends). See c. Passive Category Income, later. However, for this purpose, passive income also includes (a) income subject to the special rule for high-taxed income described later, and (b) certain export financing interest.
All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-3 (Form 1065), Schedule K-3 (Form 1120-S), or similar substitute statements.
Your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return).
Thank you in advance.
Candace
