- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
The details are in Form 1116.
Basically
Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources.
So be sure you have entered the proper amount not only of foreign taxes, but also foreign income (typically dividends) on your 1099-Ds. Sometimes you have to hunt for that information, other brokers make it obvious. Check to make sure it imported correctly.
See https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit-how-to-figure-the-credit
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎June 4, 2019
10:33 PM