pdeclerck
New Member

How do I get $187 in foreign tax to appear on line 48 of 1040 WKS ? $187 is listed in 1099-DIV line 7. I tried the link to F1116 Copy1 trick but it did not work.

I downloaded 1099-DIV from Fidelity Investments.

Deductions & credits

Is line 11b on the 1040 wks. greater than zero?
pdeclerck
New Member

Deductions & credits

From 1040 WKS. The 11b line "Total Tax" is zero.
pdeclerck
New Member

Deductions & credits

I paid $75.56 foreign tax from $493.41 in dividends on Toyota Motors stock (Japan) and $111.29 in foreign tax from $412.20 in dividends on Novo-Nordisk stock (Denmark). I have other dividend income but on US stocks.

Deductions & credits

Since the foreign tax is less than $300, TT by default implements the exemption. This means that TT automatically inserts the tax on line 48 off the 1040 wks. The problem is that the amount on 11b has to be at least that amount to use the tax. Since it is zero, there is no tax credit. Since the exemption was utilized even though it didn't do any good, the rule is that the unused tax is "utilized." That means it cannot be carried forward. If you want to carry it forward, you have to elect not to use the exemption. If you want to carryforward, then advise and I'll forward the method.
pdeclerck
New Member

Deductions & credits

"Exemption" means tax credit or tax deduction? Where does 11b amount come from? Yes. I would like a carryover.

Deductions & credits

Exemption is a tax credit that does not require filling out a f1116. The limit is $300 single and $600 married filing jointly. 11b is the total tax you owe after calculating income, deductions etc.

To elect to not use the exemption, here is the following technique.

Go to the Foreign Tax Credit Interview

The 1st screen header is "Foreign Tax Credit."  Click Continue

The 2nd screen header is "Tell us about your foreign taxes."  Check the box marked "none of these apply." This is necessary to avoid TT exiting the interview prematurely.

Continue with the remainder of the interview.

After TT exits the interview, in Forms Mode, in the left pane, click on the "Info Wks." Scroll down to Part VI; then to the 5th paragraph to the intro "Foreign Tax  Credit (Form 1116)."  Check the box and this will force TT to generate the f1116.

Then go to the f1116 wks.;  scroll down to the carryover section, and you should see the credit is carried over to TY2019