Hi Dave,
As an Employee Tax Expert, can you confirm that the following re-post (@TommyMo) is accurate and that a taxpayer using Turbo Tax can adjust the input field for foreign taxes paid so that the amount entered is $600 (rather than a higher amount actually paid) and then can elect the SimplifiedMethod for claiming FTC?
@TommyMo , here is the rub ---- if you let TurboTax recognize ( enter ) the full $941.24 as your foreign taxes paid, it would not even ask you if you want the simplified method and/or the safe harbor treatment. You will need to change that entry on the worksheet/entry area for the 1099-DIV to $600 --- then it will ask if you want the simplified treatment and therefore allow the recognition of the $600 as foreign tax credit against US taxes.
If the amount remains where it is downloaded ( US$941.24 ) , TurboTax will only ask if you want foreign tax credit or deduction ( for an itemized deduction on schedule-A ).
Does this help your situation or do you need more help ?
March 10, 2021 10:57 AM
