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Level 1
posted Jun 26, 2020 5:10:37 PM

Need help with1116 form. How do I claim credit for tax paid on interest income in another country? I see options for rental and other source but not interest income

0 2 469
2 Replies
Expert Alumni
Jun 26, 2020 6:28:09 PM

See the TurboTax article below to get started with Form 1116:

 

Where do I enter the foreign tax credit (Form 1116) or deduction for 2019?

 

As you go through the steps in the article above and select to take the credit, TurboTax will recognize that you entered foreign taxes paid in the interest income section of your return. 

  • You will be asked to select the foreign country where the taxes were paid using a drop down menu. 
  • Then on the next screen click Report Income. 
  • Select the source of the foreign income (the name of your financial institution). 
  • Then enter the amount of the interest income you reported that was due to the foreign source. 
  • If you only had the one source, select 'No' on the next screen and answer the remaining questions in this section.  

 

@prashalva

Not applicable
Jun 26, 2020 7:22:02 PM

as stated  you report the interest as income and on the same form enter the FTC or in step by step mode when it asks.  note that if you are single you can claim FTC of $300 or less ($600 if married) without filing 1116.  enter the FTC  and don't link it to a form