Solved: Foreign Tax credit - Form 1116
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Earniep
Level 1

Foreign Tax credit - Form 1116

 

When running Smart Check, TT asks me to check

Form 1116 - Foreign Tax Credit Comp Wks - Paid/Accrued boxes must be entered. 

 

It gives me these choices:

No entry

Method: Paid

Method: Accrued

 

The only Foreign tax I have is $6.00 for mutual fund dividend.  That amount is already entered on the 1099-Div form.

 

I didn't have this problem last year when I had similar situation.

 

I'm not sure which to check.  Is it the Method: paid?

 

Thanks

 

 

1 Best answer

Accepted Solutions
LinaJ2020
Employee Tax Expert

Foreign Tax credit - Form 1116

I will suggest you to check the option "Paid".  

 

If you have paid taxes to both foreign and the US tax authorities including taxes paid on your mutual fund, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit. The credit will show on Schedule 3 line 1 and line 20 on Form 1040.  

 

 

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3 Replies
LinaJ2020
Employee Tax Expert

Foreign Tax credit - Form 1116

I will suggest you to check the option "Paid".  

 

If you have paid taxes to both foreign and the US tax authorities including taxes paid on your mutual fund, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit. The credit will show on Schedule 3 line 1 and line 20 on Form 1040.  

 

 

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Earniep
Level 1

Foreign Tax credit - Form 1116

Thank you.  That's what I thought, but wanted to make sure.

LinaJ2020
Employee Tax Expert

Foreign Tax credit - Form 1116

You are welcome! 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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