You can only get the Foreign Tax Credit if you had foreign income and paid foreign taxes on that income. Be sure to enter the foreign source income and the foreign taxes paid before calculating the credit.
For example, if you paid foreign taxes on dividends you received:
- On the screen Let's get the info from your 1099-DIV be sure to mark the box My form has info in other boxes (this is uncommon).
- Enter the Foreign Tax Paid in Box 7.
Then, to calculate the credit for foreign taxes paid please follow these steps:
- Click on Federal > Deductions & Credits
- Scroll down to the Estimates and Other Taxes Paid section and click on the box next to Foreign Taxes
- On the Do You Want the Deduction or the Credit screen, click on the Take a Credit box.
- Continue through the screens, entering the requested information .
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