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Level 3
posted Mar 26, 2022 3:32:51 PM

TT is asking me to fill in a detailed explanation for Form 1116. What do I put there?

It brings up an Explanation Statement that says "Enter your explanation here to complete the required statement.  It must show the other deduction items for Line 3B column a." I don't know what other deductions this refers to, and I've never been asked to fill this in before.  The foreign tax is RIC from two mutual funds, one showing dividends and the other showing both dividends and capital gains on a 1099 DIV.

0 4 1807
1 Best answer
Expert Alumni
Mar 30, 2022 7:51:51 AM

Yes, answer yes to the question that  All foreign taxes were reported with interest and dividend income only?  

 

@Donna3

4 Replies
Expert Alumni
Mar 28, 2022 9:41:22 AM

Enter the word "none" and see if this clears up your error.  let me know if this works.

Level 3
Mar 28, 2022 4:53:56 PM

Thanks @DaveF1006 I think that took care of it.  But I just want to make sure I answered the interview correctly.

 

I need to use the simplified method on form 1116 for AMT.  One of the questions it asks is: All foreign taxes were reported with interest and dividend income only?  I said yes, but my 1099-DIV indicates both capital gains and dividends for one of the foreign funds.  Is it correct to answer yes? TT only seems interested in Box 1a, ordinary dividends.

 

If I answer No, it takes me to a page asking about qualified dividends and long term capital gains.  Firstly, my form does not indicate LT cap gains, only cap gains in box 2a, so I don't know what the LT portion is.  Secondly I'd have to calculate it since only a portion of my mutual fund income is foreign source, and to try to figure it out would be a nightmare.  

 

Thanks for your help!

Expert Alumni
Mar 30, 2022 7:51:51 AM

Yes, answer yes to the question that  All foreign taxes were reported with interest and dividend income only?  

 

@Donna3

Level 1
Apr 18, 2022 8:28:33 AM

This worked for me.