I followed the instructions from DMarkM1 and entered all the information from my NR4 onto the 1099-R. I am now working on the Foreign Tax Credit portion to claim what the Canadian payer withheld from my income. In order to have a better understanding of what is needed for this part, I decided to first download form 1116 and instructions, manually filled it out, did all the calculations and came up with the Foreign Tax Credit that I am entitled to on Line 35, Part IV, of the 1116 form. According to this I am entitled to about $us 700 of credit. However when I go through the interview questions of the Foreign Tax Credit section of TurboTax, it ends up telling me that I am not entitled to this credit. Part of the problem seems to be that the interview questions state that foreign taxes paid are reported on income on forms 1099-INT, 1099-DIV, 1099-OID or Schedule K-1, none of which are related to my case. The foreign income that I am reporting is as if I had received a 1099-R, and ends up on line 5b of form 1040. So it would seem that the interview questions of Foreign Tax Credit in TurboTax do not cover 1099-Rs. I would appreciate your suggestions.
