I am a US citizen residing in the USA. I worked overseas in the UK for an extended period through 2015. I have foreign tax credit carryovers, a UK bank account that earns interest, and own stock in a Canadian company that pays dividends. This is my first year preparing taxes on TurboTax; in the past I have used an accountant.
Running into issues with Form 1116, Foreign Tax Credit.
- My returns from prior years include three completed Forms 1116: one each for General Category Income, Passive Category Income, and Certain Income Re-Sourced by Treaty. I'd like to do the same in TurboTax. In TurboTax I am able to enter information separately for the three categories of income, but the software will only generate a single Form 1116, for the category of income I enter first. Is there a way to generate a separate Form 1116 for each of the three categories of income I have entered? It does generate separate foreign tax credit carryover information for the three categories of income, presented along with the worksheets.
- My foreign source income from 2021 was limited to dividends from Canada, and bank account interest from the UK. As this is passive income, In TurboTax I entered the passive category income information first, so the software would generate a Form 1116 for Passive category income.
- On the Form 1116 Part I generated by TurboTax, there are column headers for Canada and the UK, but all the information beneath it is blank. It does not pick up the dividend income from Canada, or the bank account interest from the UK. I specified the Canadian source dividends when entering the 1099-DIV. I entered the UK bank account interest as a 1099-INT (though I do not receive a 1099-INT for it), as there does not appear to be another way to enter this information, and TurboTax does not have an option to identify it as coming from the UK. In the Deductions and Losses section, 2d Gross foreign source income, 2e gross income from all sources, and related calculations, are also blank. How can I get these sections to identify my foreign source passive income and taxes paid, and report it correctly?
- Form 1116 Part II, Foreign Taxes Paid or Accrued, lists "1099 taxes" under "Date paid or accrued" for Country A and Country B. When entering the 1099-DIV, I specified taxes paid to Canada, but these do not appear here. I did not pay taxes to the UK. How can I get this section to identify my foreign tax paid, and report it correctly?
Thank you for your help!
