topic Re: foreign source amount & form 1116 in Get your taxes done using TurboTax

foreign source amount & form 1116

vs0001 — Mon, 24 Mar 2025 02:40:08 GMT

When I run smart check at the end of the sections, I get 2 different types of flags - all related to foreign source income to correct.
1)" Schedule B - 1099-Div <xxxxx brokerage company> foreign source amount must be entered" - and it shows a 1099 DIV worksheet Box 7 that contains foreign tax paid as in my 1099 DIV form- and asking me to fill box 7D - total foreign source income - this is only mutual funds inv. What do I enter ? 0 ?

2) "schedule B-1099-Div <xxxxx brokerage company>foregin tax schedule A box or form 1116 copy should be entered. return to the place to correct the entry" - and a checkbox with "foreign tax schedule A box " - it shows all the info transferred from brokerage, when I click 7b in the worksheet, it shows a short cut that takes me to another screen - form 1116 (COPY1) to link - " do I link this ? this form doesn't open or no content what am I supposed to do ?

thanks

Re: foreign source amount & form 1116

Mike9241 — Mon, 24 Mar 2025 02:57:19 GMT

the mutual fund should report to you the foreign source income. A foreign-based fund may have non-foreign-source income. There's no place on a 1099-div to report this so the fund should send you a tax reporting statement or some other document. Call them. you can't use zero because then you won't get the FTC.

when entering a 1099-div or int with a FTC and you file form 1116, the first 1099 should be linked to column A of the first 1116. the 2nd should be linked to column B and so on. if there are more than 3 you need a second form 1116 so the 4th 1099 would again be linked to column A

note that if you are single, your total passive FTC is $300 (it's $600 if married filing jointly) or less you do not need form 1116. in this case on each 1099 only enter the FTC nothing else about the FTC.

Re: foreign source amount & form 1116

vs0001 — Mon, 24 Mar 2025 03:22:43 GMT

thank you

when you refer here as "tax reporting statement" , is there any form # associated with this when requesting the brokerage ? I went through the 1099-DIV/INT sent by them, there is a section called "mutual fund and supplemental information" that shows " FOREIGN SOURCE INCOME PERCENTAGES" against some of the mutual funds with a % number - is this % of the fund amount invested or end of 2024 year end ? is this the $ amount I calculate & total for all the funds (about 5 or so) and use this to enter ? or you refer to an entirely separate statement that I need to request from brokerage asking for absolute $ number on the source income ? thanks for any help.