cormack8
New Member

Foreign tax paid of $8.69

why do I have to upgrade to $34.99 plan just for this ?
GeoffreyG
New Member

Deductions & credits

The answer to your question is that it you do not absolutely have to claim a foreign tax credit if you do not want to.  As a taxpayer you have the election, or option, to forego a foreign tax credit claim if you wish.  One valid reason for doing so, for example, would be if the amount of the foreign tax credit is relatively small, and you do not want to purchase (i.e., pay for) a TurboTax software program upgrade just to be able to make the credit claim.  That would be a rational, and understandable, decision.

For example, in your case of being asked to pay for an upgrade simply to claim a $8.69 foreign tax credit, it does seem that that you would be better off (financially) if you did not upgrade, and do not apply for a foreign tax credit.

Thus, if you don't care too much about your (potential) foreign tax credit claim, then you can safely leave the related information (from Form 1099-DIV, Box 6, for example) off of your tax return.  That way no foreign taxes paid amount will be indicated on your tax return, and the program will not ask you to upgrade to claim the foreign tax credit.

In other words, neither the IRS nor anyone else is going to make or "force" you to take a valid tax credit (or alternatively a deduction) that you do not wish to.

Thank you for asking this question.