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Deductions & credits
Hi @pk . This is my first time trying to fill out the Form 1116. I have foreign dividends allocated to Various and RIC (2 1099-Div's). I saw online that I would most likely get a larger Foreign tax credit using the Form 1116 instead of doing the simplified method of calculating foreign tax credit. This was also the first time Turbo Tax has mentioned using simplified method of calculating foreign tax credit. I declined it since I paid over $1k in foreign taxes. We don't have any investment interest expenses since theses are simply from mutual funds and stocks. I initially filled everything out by going category by category. The screenshot shown is from when I performed Smart Check and it found 3 items that needed fixing. I figured that I don't have any deductible other interest, so I figure this section is not really needed so I put zero, but I'm guessing that I probably need to use the foreign income % provided by each broker to calculate the total foreign income (qualified and ordinary dividends) for 2025?
Row C below contains the portion of foreign dividends by country source.
On another note, we will be MFJ itemizing deductions and are not subject to AMT.
I feel like Turbotax need to build in more in app explanations for the foreign tax credit and how to fill out Form 1116. There were unfortunately no popups on this screen for help.