topic foreign tax in Get your taxes done using TurboTax

foreign tax

minike — Mon, 02 Mar 2020 21:37:43 GMT

first time in 16 years using TurboTax, IRS rejected a return with foreign tax (from 1099-DIV). TurboTax help was totally inept in answering "why." I talked to three technicians? They did send me a comment about Foreign Taxes and the example was on 100,000 $. I had 11.00 dollars credit!

I filed another return for a friend with 85.00 $ Foreign Tax credit and it was accepted! I just gave up on the 11.00$ credit.

Still would like to know why.

Re: foreign tax

Anonymous — Mon, 02 Mar 2020 21:44:29 GMT

did you elect out of filing form 1116 since the FTC was less than $300? if not the 1116 was required. so without it the return would be rejected. that's the best answer I can come up with.

Re: foreign tax

minike — Tue, 03 Mar 2020 00:53:33 GMT

yes, I never use 1116. I figure the credit is much better even if one could itemize. I filled out both returns (two different taxpayers...) the same way. One was rejected five times until I gave in and just filed it with the 11.00 $ going into Itemized Deductions.

Turbo Tax would send me the following message: "If any value is present on line 13, there must be a corresponding Credit for Repayment Code." Nobody could explain what this meant (the value was 0.00) and the "help" did not understand that Schedule 3 was a calculated form to include the Foreign Tax Credit.