DaveF1006
Expert Alumni

Deductions & credits

To clear all mismatches, go to your 1099 iNT entry and type in "1" for your foreign tax credit. There will be a follow-up question that is labeled Tell about your Foreign Interest; Here you will type in $110 and the country where this originated.

 

When you start preparing your foreign tax credit section, both the 1099-INT and 1099-DIV will be linked. This saves the tedious task of entering these manually, as there will be boxes to check that are linked back to your 1099 INT/DIV entries. Both incomes will now be reported to get a true estimate of your foreign tax credit.

 

Adding the $1 won't make an impact on your return and will not arouse scrutiny with the IRS.  If you do feel anguished by reporting that extra dollar as a credit, you can edit your 1099 DIV entry and reduce the foreign tax paid in Box 7 by $1. This way, your foreign taxes paid are reported correctly.

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