In previous versions of Turbo Tax any foreign taxes reported on my 1099-DIV would be applied as a foreign tax credit. This year it is trying to force me to include a Form 1116 when it should not be needed. These taxes are all related to passive income dividends from mutual type funds. The amount of tax is about $112. When I look at the 1099-DIV Worksheet, it is asking for information and the instructions are not very specific. In box 7 it shows the foreign tax paid and indicates that "All income is considered passive". Line "a" is checked if I you want to take the amount as a deduction (which I don't). The box has a red indicator in it. Line "b" indicates to double-click to link to Form 1116. I don't want that either, nor Line "c". Line "d" indicates to enter "Foreign source amount included in dividends". I assume that is the amount of dividends that were paid by any funds that deducted foreign taxes. Box 8 also seems to refer to information for Form 1116. I tried putting in info there, especially checking the tax is from a mutual fund or regulated investment company. It generates a "RIC" in the far right field.
I am at a loss as to what Turbo Tax wants here. If I go to Form 1116, it asks for the name of the country from which the dividends were paid. You don't get that from the 1099-DIV. All it says is "Various".
So what do I have to do to get the credit without having to go through the very complicated Form 1116.
JohnD
