topic Prompts for Form 1116? in Get your taxes done using TurboTax

Prompts for Form 1116?

st2003 — Thu, 20 Feb 2020 07:35:46 GMT

I have interest income from a foreign bank account, and the foreign bank deducted taxes (>$600).

Under "Deductions and Credits" Tab in TT I filled out the Foreign Tax section saying I have paid foreign taxes. At that point TT says that it will prompt me to fill out Form 1116, but it never does??!!

Where does TT ask how much taxes I paid in the foreign country, and then apply the appropriate credit?

Thanks
ST2003

Re: Prompts for Form 1116?

Anonymous — Thu, 20 Feb 2020 07:41:00 GMT

go to the 1099 interest form (use forms search box 1099 ) towards the bottom is section and a link to an 1116. the category for the 1116 is passive (yes I know it's not the same as passive income from rentals but that's what the IRS says to use)

Re: Prompts for Form 1116?

sjwarvi — Sun, 01 Mar 2020 22:19:17 GMT

Form 1099-DIV shows I paid Foreign tax $55.01. Do I need to report this on form 1116? I've never received or filled out this form in the past. Thank you.

sjwarvi

Re: Prompts for Form 1116?

ThomasM125 — Sun, 01 Mar 2020 22:26:47 GMT

Since you paid more then $600 in foreign taxes, you will need to fill out one or more forms 1116. You can do this in TurboTax as follows:

Go to the "Foreign taxes" section under "Estimates and Other Taxes Paid" in the "Deductions & Credits" section of TurboTax to see if you qualify for a credit for foreign taxes paid.

Re: Prompts for Form 1116?

Perky63 — Tue, 30 Mar 2021 01:12:17 GMT

I keep getting prompts about this form and my one international fund which has a tax paid which I input and then system keeps asking for a specific line item on our K-1 which is zero, which he keeps rejecting...

How can we get past this question

Claude and Jeanette Perkins

Re: Prompts for Form 1116?

Perky63 — Tue, 30 Mar 2021 01:17:53 GMT

this an estate setup as a gift for my wife and siblings....its pays the taxes and not us....so not applicable...never had this problem before..

Re: Prompts for Form 1116?

Perky63 — Tue, 30 Mar 2021 01:19:26 GMT

This was a gift from the estate and we are not responsible for most of the taxes just a very small portion. There is nothing on line 4b3b on the K1.

Re: Prompts for Form 1116?

LinaJ2020 — Tue, 30 Mar 2021 20:19:27 GMT

If Form 1116 does not apply to you, you can simply remove it from the program. Here are the steps:

In TurboTax online,

Sign into your account, select Pick up where you left off
From the left menu, select Tax Tools, click on the drop down arrow
Select Tools
Under Other helpful links, choose Delete a form
Select Delete next to the Form 1116 and Continue with My Return

You will file the Form 1116 if you pay taxes for more than $600 on the same income to both foreign and US governments. If you did not pay, you don't need to file.