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Reading your question, I am not sure if you entered this correctly so I will give you complete steps on entering the sale information and for claiming the foreign tax credit so there is no confusion on your part. To report the sale and sales tax, enter in this exact manner.   Go to Federal > Wages & Income. Find Investments and Savings (1099-B, Stocks, etc.) and click Start/Review. Click Add investments and select Enter a different way. Choose Other (for land or second homes). Enter the details of the sale (Sale Price, Date Sold, and your Original Cost). Here, you can deduct the sales tax from the sale price to reduce the capital gain on the sale. Now here is an important distinction on claiming the foreign tax credit. The IRS only allows a Foreign Tax Credit (FTC) for "Income Taxes" or "Taxes in Lieu of Income Taxes." If the foreign country charged you a Sales Tax, Value-Added Tax (VAT), or Stamp Duty (a tax on the transfer of the deed), this not eligible for the Foreign Tax Credit on Form 1116.  Here is how to tell.  Income Tax / Capital Gains Tax: This is a tax calculated on your profit (Sale Price minus your Purchase Price). If the tax was based on the "net gain" from the sale, it is a "creditable" income tax. Sales / Transfer / Stamp Tax: This is a tax calculated on the total sale price or a flat fee for the transaction. If you had owed this tax even if you sold the land at a loss, it is a transaction tax, not an income tax.   If you feel this was an income tax based on the parameters listed above, here is how to claim the foreign tax credit.    Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Taxes. Click Continue until you see the screen: "Do you want to take a credit or a deduction?" Select Take a Credit. You will see a summary of your 1099-DIV foreign taxes.  Make sure all income is reported by clicking on the boxes until you are done. Once you are in the summary screen you should get a prompt asking if you have more income to report than the 1099 DIV. Pay attnetion on how that is worded so that addtional income may be added. Click "Add a Country" (do not edit the existing 1099-DIV entry). Select the Country where the land was located. On the screen for "Income Category," select Passive Income (this covers capital gains from land sales). The "Gross Income" Screen: This is where it asks for the source of the income. Enter the Total Sale Amount (in USD) from the land sale. The "Foreign Taxes Paid" Screen: Enter the Sales Tax/Transfer Tax you paid to that country here. Again, I cannot undermine the importance of determining if this is a sales tax or an income tax based on capital gains.  if you determine this is an income tax and you are taking a credit, go back and add back in the tax where you entered the sale of the house. This was in step 6 of the sale information I provided in my first set of steps. You are not allowed to double-dip on your tax benefits.   @VSN7    @rgoutham            

We would like to research this experience further. It would be helpful to have a TurboTax ".tax2025" file that is experiencing this issue.   You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, please follow these instructions:    In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools.  Then select Tools below Tax Tools. A window will pop up which says Tools Center. On this screen, select Share my file with Agent. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. You may wish to snap a screenshot to post instead of the actual number. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you. Please include any States that are part of your return - this is VERY important. If you are using TurboTax for Desktop, go to Online in the top menu, then choose "Send Tax File to Agent."   We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@pk, thank you for your note – and, I agree with your analysis.   To explain the issue using your numerical example, TurboTax displays a screen entitled “Any foreign source qualified dividends or long term capital gains?" during the Foreign Tax Credit interview.  On that screen, TurboTax prompts the user to enter “foreign qualified dividends and l.t. capital gains.”  When $800 is entered, TurboTax displays the error “this field should be at least $950” (where $950 = “total foreign income for this category” = Box 1a x 95%).  However, based on the supplemental tax reporting information provided by the mutual fund company, the correct answer to the question is indeed $800 (= Box 1a x 80%) – which, of course, is less than the $950 minimum required by TurboTax.   Any insight on why TurboTax might be reporting this error?  And, more importantly, how do I circumvent this issue and enter the correct amount for “foreign qualified dividends and l.t. capital gains”?   Thank you for your assistance.

Please update here if you continue to experience the error.   It's possible to print your actual city return and then use the TurboTax city return to complete it. Also, you do have time to wait to see if any update changes the printing.   @kwcoffman 

The desktop version of form 5695 has a glitch that causes it to deny users the tax credit. On line 31 of the form in the Energy Efficient Home Improvement Credit Limit Worksheet, on the first line of the Worksheet it is supposed to auto-fill the amount on Form 1040, line 18, and it does not.  The end result of this glitch is that the calculated amount of the credit ends up being zero, even when the user is indeed eligible for the credit.

Use form 1099-INT and enter the name of the payer and the interest received in box 1   To report interest income received - Click on Federal Taxes (Personal using Home & Business) Click on Wages and Income (Personal Income using Home & Business) Click on I'll choose what I work on Under Interest and Dividends On Interest on 1099-INT, click on the start or update button Online returns - On the screen Did you have investment income in 2025? Click on Yes On the screen Let's import your tax info, click on Enter a different way On the screen OK, let's start with one investment type, click on Interest and Continue On the screen How would you like to upload your 1099-INT? Click on Type it in myself

If you have TurboTax Desktop, you can switch to Forms Mode to edit line 21. If you are using TurboTax Online there is no way to edit a line on a specific form.   Also, See Why am I getting address errors for my Home Energy credit when the address has already been added and is correct? It does not sound like what you described above, but make sure this is not the issue you are experiencing.   To switch to Forms Mode in TurboTax Desktop: Click on Forms at the top right of your TurboTax screen In your left panel scroll down to find Form 5695 Click on ‌Form 5695 and it will show in your right panel Try to click on the answer to change it You can get back to the screens in TurboTax to review your entries to make that change: Click on Search at the top right of your TurboTax screen Type (exactly) 5695, residential energy credit Click on the link Jump to 5695, residential energy credits Your screen will say Energy Efficient Home Improvements Continue through your screens to review your entries. You could also try deleting Form 5695 from your return and then go back and re-enter your information. This may reset the program.   To delete a form in TurboTax Desktop, you can: Click on "Forms" in the top right of your TurboTax screen to switch to "Forms Mode" In your left panel of your TurboTax screen find Form 5695 Click on "Delete Form" at the bottom of ‌Form 5695 Click on "Yes" to confirm the deletion To delete this Form in TurboTax Online:  Continue, or Pick up where you left off to enter your return. In your left panel, select "Tax Tools" and then "Tools". On the page that pops up, scroll to "Other Helpful Links" Choose "Delete a form". Click on the trash can next to ‌Form 5695 And then go back using the instructions above to get back to the screens in TurboTax to review your entries.   Click here for Where do I enter qualified energy-saving improvements? Click here for Energy-Efficient Home Improvement Credit   Please return to Community if you have any additional information or questions and we would be happy to help.  

The CMMINV - Community Investment Credit is claimed on the MA return on the screen titled Massachusetts Credits in TurboTax.   When you get to the credits page when preparing your MA return, scroll down to Refundable Credits.   The fourth item on the list is the community investment tax credit.   Enter the information there and TurboTax will report the credit on Schedule CMS.   Qualified investments include certain cash contributions made to a community partner or a community partnership fund.  The credit is equal to 50% of the total qualified investment made by the taxpayer for the taxable year. No credit is allowed to taxpayers that make qualified investments of less than $1,000.