No prompt for foreign source income though foreign taxes paid

Forum|Forum|4 years ago
February 23, 2022
1 reply
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Using TT for 2021 desktop. Imported 1099DIV from TD Ameritrade and from National Financial Services. For the latter ~$3 foreign tax was paid and TT prompted me for amount of foreign source income. For the former ~$20 foreign tax was paid but there was no prompt for foreign source income. The 1099DIV worksheets both show the tax paid. Why no prompt for the TD data?

ErnieS0

Level 15

TurboTax did not prompt you to enter your foreign dividends because you do not have to file Form 1116 to receive a foreign tax credit or deduction.

Single filers who paid $300 or less in foreign taxes, and married joint filers who paid $600 or less, can omit filing Form 1116. But using the form enables you to carry forward any unused credit balance to future tax years; without filing Form 1116, you give up this carryover tax break.

Learn more at Claiming the Foreign Tax Credit with Form 1116

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highschoolhankAuthor

Level 4

Thanks for the quick response! Based on your reply, should I delete the foreign source income information from the 1099DIV worksheet that I was prompted to enter for NFS?