Business & farm

@BillM223

 

I actually found the origin of the 2nd error. Foreign taxes were not reported in US dollars as Form 1116 Part II, column (m) shows an amount in foreign currency. TurboTax assumes that the dividends are reported in US dollar in a form 1099. This error was not there in previous years. Note that Easy Step always assumes that you are entering a dividend as if were reported on a 1099-DIV. No other way to enter it.

 

If foreign tax paid on passive income is reported to TIP you in U.S. dollars on a Form 1099-DIV, 1099-INT, or

similar statement, you don't have to convert the amount shown into foreign currency. This rule applies whether or not you can make the election to claim the foreign tax credit without filing Form 1116 (as explained earlier). Enter “1099 taxes” in Part II, column (l), and complete columns (q) through (u) for each foreign country indicated in Part I.