TurboTax is designed with a strict one-to-one relationship between a 1099-DIV entry and a foreign country on Form 1116. When you have one 1099-DIV with dividends from multiple countries (e.g., Canada...
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TurboTax is designed with a strict one-to-one relationship between a 1099-DIV entry and a foreign country on Form 1116. When you have one 1099-DIV with dividends from multiple countries (e.g., Canada, UK, and "RIC"), TT lets you assign it to the first country, but then "locks" that 1099-DIV, making it unavailable for the remaining countries.
The IRS technically requires country-by-country reporting on Form 1116 to ensure that the foreign tax credit (FTC) doesn't exceed the U.S. tax on that specific foreign income. However, for most individual investors with "passive" income (dividends), there are two significant exceptions:
RIC Exception: The IRS explicitly allows you to aggregate all income and taxes from Regulated Investment Companies (mutual funds and ETFs) under the single "country" code RIC.
$300/$600 Rule: If your total creditable foreign taxes are less than $300 ($600 if filing jointly), you don't even need to file Form 1116. You can simply claim the credit directly on Schedule 3.
Workaround / Solution Options:
1. Use RIC -the IRS accepts it for brokerage forms
2. Change your 1099 foreign tax to zero for box 7. Create a nwe 1099-DIV for each country and enter the tax in box 7
3. Use RIC for the RIC and Various for the other. This lets the program see 2 different entries.
You may need to delete the 1116 to clear any data issues.
I would use RIC and Various, if it were me. You have the paperwork to show the values are correct.