pk
Level 15
Level 15

Deductions & credits

@anu_shivnath , Namaste  Anu ji

Are you talking about foreign  taxes  paid and reported on 1099-INT or is it where  you earned  interest on a bank savings account or  FD /CD and now want to recognize the  earned interest  and  Taxes held/deducted at source  ( TDS ) ?

If the former then TurboTax would know about the FT but in the latter TT has no way of knowing.

 

In  the latter case, you have to recognize the interest earned just as if you had received  this from a domestic source  ( just no 1099-INT and obviously no EIN.   You then go to the  "Deductions & Credit" section/ tab  and  from the list of  deductions/credits choose  "Foregin  Tax Credit".  Answer all the questions and TT will fill out the form 1116.  Note that while  US will recognize the total Foreign Tax paid, the allowable amount for the tax year is the lesser of  actual paid amount  and  allocated  US taxes on the same doubly taxed income  ( US uses a ratiometric allocation  based on Foreign source income to world income ).

 

Does this answer your query ?

Is there more I can do for you ?

 

Namaste ji

 

pk