Hi -
I've been using TurboTax for years. I'm a US Citizen, Spanish tax resident.
My income is entirely from US sources. The income consists of an IRA distribution (1099-R), US bank interest (1099-INT) and US investment company dividends (1099-DIV).
In Spain, I report the IRA distribution, US interest and US dividends and pay the associated tax.
In the US, I also report these items in the appropriate income sections of TT.
For the US, I've also completed the foreign tax credit in previous years in two categories:
- Passive Income (traditionally Form 1116 - Copy 1)
- Income Re-sourced by Treaty (traditionally Form 1116 - Copy 2)
Normally, the "Passive income" copy notes the portion of dividends that are of foreign source and the tax credit is given. This is determined by answering TT questions about the portion of income that are foreign sourced.
In the "Income Re-sourced by Treaty" section, I manually enter the IRA distribution under Other Gross Income. As expected, this value is added to the FTC tax worksheet under Gross Income.
My question is:
During the TT step-by-step procedure for "Income Re-sourced by Treaty" it specifically states that any income already reported on 1099-INT, 1099-DIV, etc. should NOT be reported again. How are these items included on Form 1116? In previous years, I see my US interest and dividends on Form 1116, Part 1, Line C (Interest and Dividends from Schedule B). I don't recall manually entering a value directly in the Form but perhaps I did. Is there some other place to link Sched B Interest and Dividends to the Form 1116 or is it a manual entry?
Thanks!
