topic Re: Form 1116 Comp Wks in Get your taxes done using TurboTax

Form 1116 Comp Wks

aptiva4tt17 — Tue, 18 Mar 2025 08:58:38 GMT

In Part I, Line g-1-g (Ordinary Income) and g-1-h (Qualified Div and LTCG): The numbers come from the 1099-DIV forms that I filled out through Step-by-Step process ("SBS").

Some numbers ended up on the Ordinary Income line on Form 1116 Comp Worksheet; whereas some numbers appear on the Qualified Dive... line. There is nothing in the SBS to indicate whether the Foreign Income is Ordinary or QDI. So how does TurboTax determine which line to put it on in the Comp Worksheet?

All dividends should be QDI. How do I correct it? [I don't know whether the correction will reduce or increase the allowed Foreign Tax Credit.]

Re: Form 1116 Comp Wks

rogge1722 — Wed, 19 Mar 2025 17:12:22 GMT

During the SBS interview, about the 8th screen with the header "foreign-source income", appears. You insert into the box the foreign sourced ordinary income that you obtain from the payer's supplemental info.

Later the screen with the header "any foreign source qualified dividends or long term capital gains?" will appear. You enter the foreign qualified amount into the box that you obtain from the payer's supplemental info.

Re: Form 1116 Comp Wks

aptiva4tt17 — Thu, 20 Mar 2025 07:33:06 GMT

Thanks, rogge.

>>...Later the screen with the header "any foreign source qualified dividends or long term capital gains?" will appear....

I am not getting this screen. I am using Turbotax Deluxe. I select "I'll chose what I work on" in SBS. Then I go to the 1099-DIV and select the account/company that I want to edit. After I click on Edit, I get a screen with the Box 1a, 1b, etc. data; and I check "My form has info in other boxes" with Box 7 for Foreign tax paid.

Then I get a screen "Do these uncommon situations apply?" [None}.

Then "Tell us about your foreign dividends" with the amount for Foreign dividends received, whether it is from mutual funds and Countries. This screen has a note at the bottom "Since you paid foreign taxes, you may be able to claim a deduction or a credit. Just remember to go to the Estimated and Other Taxes Paid section under Deductions & Credits."

That was the screen. And I am back to "Let's finish pulling in your investment income" -- with a list of all payors of 1099-INT and 1099-DIV.

Re: Form 1116 Comp Wks

rogge1722 — Thu, 20 Mar 2025 12:36:33 GMT

Those screens you described are under the Wages & Income section. If you haven't been thru the foreign tax credit interview, then under "Deductions and Credit", then under "Estimates and other taxes paid" then "Foreign Taxes" and enter the data requested.

During the interview, the screen with the header "No other Income or Expenses", select NO to arrive at the screen to input foreign qualified dividends.

Re: Form 1116 Comp Wks

aptiva4tt17 — Fri, 21 Mar 2025 08:47:37 GMT

Thanks, rogge.

But when I click on No in "No other Income or Expenses", I get the Foreign Tax Credit Summary -- with 2 Form 1116 listed -- each with an Edit and Delete icons next to it. I click on edit and went through numerous "questions" and never get a screen for entering Qualified Dividend.

I finally go to the Forms and found that I can entered that info. directly. On a lot of the forms, the only way you can change the numbers is to over-ride them. In this case, I don't have to over-ride.