Working through the Foreign Tax credit section and need some help.
Everything here is associated with a half dozen foreign mutual funds. All 1099-div, no sales of the funds.
Question 1
I go through the interview process of entering the foreign source income. In the interview and help boxes, it continually references Box 1a and 'dividends', but for each fund, it quotes an amount of "total income" which appears to not only include the dividends, but ALSO the capital gains distributions for that fund. So, when I enter in Foreign Source Income in the box, is it only the foreign portion of the *dividends*? or all the income including the cap gain distributions from box 2a for each fund?
I then confirm this is 'passive income'
Question 2
The next step asks "Any foreign source qualified dividends or long term capital gains?" It includes the foreign income that I entered in the previous step (based only on the dividend income). Are "long term capital gains" in this question the same as capital gains distributions from box 2a on the 1099-DIVs? If so, these numbers are much bigger than the income I already entered. So, how do i handle this as it won't let me enter a number that is bigger.
It also appears to have a minimum value, saying "This field should be at least $x,xxx" Where does this number come from? And what value should I be putting in here?
As of now, it looks like the foreign tax credit appears to be calculating as a full and direct credit to my Fed taxes. So not sure if this is right or whether any of it matters.
Any help would be appreciated.
