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jmjamrozy
Returning Member

Foreign Tax Credit - Double what it should be

I noticed the Foreign tax credit being inserted on the 1040 is high.

 

It should be $4 and somehow TT is calculating $8.  I have chased through the forms and found the value in Form 1116  line 35 is incorrect.  I have been through the forms and I still don't see how it is calculating this incorrectly.  If I override the value will I still be able to electronically submit the forms?

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2 Replies

Foreign Tax Credit - Double what it should be

if you enter any override not only will you not be able to e-file. Turbotax's accuracy guarantee is void.

you need to review your input - the forms you enter the FTC credit on and page 1 of form 1116. if you entred your FTC thru 1099-div, 1099-int, k-1 FTC section you do not enter it again on form 1116.

 

by the way, if your total passive income FTC is less than $300 form 1116 is not required.  then you do not link the input forms to the 1116

 

 

LinaJ2020
Expert Alumni

Foreign Tax Credit - Double what it should be

In addition to Mike9241's advise from above, please double check your entries thru these steps below.

 

In TurboTax online,

  • Open up your TurboTax account and select Pick up where you left off
  • At the right upper corner, in the search box, type in "foreign tax credit" and Enter
  • Select Jump to foreign tax credit
  • Follow prompts
  • On screen, "Tell Us About Your Foreign Taxes", Make sure check the right box
  • (First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)". 
  • Follow prompts
  • Choose the Income Type, select "Passive Income"
  • On screen, "Country Summary", add a country to continue
  • Follow prompts
  • On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount
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