topic 1099-DIV Foreign Tax Credit in Deductions & credits

1099-DIV Foreign Tax Credit

Candace978 — Mon, 09 Mar 2026 04:18:59 GMT

I only have $4.00 in foreign tax credit on my 1099-DIV. TT is forcing me to upgrade to complete form 1116, however according to the IRS website I don't have to complete form 1116 if all of the FTC was reported on the 1099-div (which it is) & meet the other requirements (which it does). How can I still proceed with filing basic edition if it won't let me but the IRS says I cna claim the FTC without form 1116?

IRS language below:

You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 23 of the form) won't apply to you. This election is available only if you meet all of the following conditions.

All of your foreign source gross income was “passive category income” (which includes most interest and dividends). See c. Passive Category Income, later. However, for this purpose, passive income also includes (a) income subject to the special rule for high-taxed income described later, and (b) certain export financing interest.
All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-3 (Form 1065), Schedule K-3 (Form 1120-S), or similar substitute statements.
Your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return).

Thank you in advance.

Candace

Re: 1099-DIV Foreign Tax Credit

Candace978 — Fri, 28 Jan 2022 17:12:40 GMT

Is it an option to not list it as a credit & take it as a deduction even if I am not itemizing & using standard deduction? or is it a problem if the amount is listed on the 1099-div but not reported as a credit?

Re: 1099-DIV Foreign Tax Credit

LeonardS — Fri, 28 Jan 2022 17:38:05 GMT

Yes, you have the option not to take the $4.00 foreign tax credit shown on your 1099-DIV. This will not cause a problem with your return if you use the standard deduction or itemize your deductions.

Re: 1099-DIV Foreign Tax Credit

Candace978 — Fri, 28 Jan 2022 17:45:33 GMT

Thank you. I actually just found the same questions and answers from 2019 & was just about to delete my question. I was unable to find the answer earlier so I posted. Thank you for the response.

Re: 1099-DIV Foreign Tax Credit

cbdelatorre — Sun, 20 Mar 2022 02:26:54 GMT

Hi there,

I report $299.28 on foreign tax that is reflected in my 1099-DIV. Last year, I was able to include as part of 1040/schedule A and not forced to complete a Form 1116. Per IRS rules, I can report in 1040/schedule A as it is less than mandated amount. However, TurboTax is forcing me to complete a Form 1116. I can 't get it to recognize that form isn't needed. What can I do to avoid 1116. I do state that I don't need to file tax credit. Help! (Thanks:) )

Re: 1099-DIV Foreign Tax Credit

JohnW152 — Sun, 20 Mar 2022 13:08:43 GMT

There are actually three conditions that must be met to claim foreign tax credit without using Form 1116. According to the 2021 Instructions for Form 1116, the conditions are:

• All of your foreign source gross income was “passive category income” (which includes most interest and dividends).

• All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-3 (Form 1065), Schedule K-3 (Form 1120-S), or similar substitute statements.

• Your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return).

That said, if you’re saying you want to delete Form 1116 (i.e., when you say “I do state that I don't need to file tax credit,”) this can be done. With TurboTax Online open,

If you’re on the Hi, let's keep working on your taxes! screen that displays the categories Personal Info, Income & Expenses, and others in the center of the screen, and none of those categories are open, click the dropdown next to any of the categories, then select the Review/Edit or Pick up where you left off button. If one of the categories is already open and has a Continue button, select the button
Next, in the pane on the left side of your screen, you should see Tax Tools. Select the dropdown to the right of Tax Tools.
Then, under that, select Tools.
In the Tool Center pop-up, select Delete a form.
Select Delete next to Form 1116 and its worksheet, if present in the list, and follow the onscreen instructions.

If you’re using TurboTax Desktop or a download, please see the TurboTax Help article How do I delete a tax form in the TurboTax CD/Download software? for guidance.

If that wasn’t your question, please explain what you’re wanting to do

@cbdelatorre

Re: 1099-DIV Foreign Tax Credit

Bullet2022 — Mon, 21 Mar 2022 20:56:15 GMT

trying to e file and keeps giving me an error and brings up a form i\Idon't have how can I get rid of that form

Re: 1099-DIV Foreign Tax Credit

ThomasM125 — Mon, 21 Mar 2022 21:25:44 GMT

A simple way to delete forms in TurboTax online is to use the Tax Tools menu option, which is on your left menu bar when you are working in your program. Then, choose Tools and then Delete a form.

If you are working in the download TurboTax program, use the Forms Mode on your menu bar to bring up the form you want to delete, then choose the Delete Form option at the bottom of the form.

@Bullet2022

Re: 1099-DIV Foreign Tax Credit

Falls Church — Tue, 22 Mar 2022 21:21:36 GMT

This did not answer the question: IRS says under the circumstances he gave, which also apply to me, the full foreign tax credit can be taken without filing a 1116. In fact, I used TaxAct for my daughter, given her multiple states, and the full credit was giving without a 1116. Turbotax wants to force us to limit the credit using a 1116 when the IRS says that's not necessary. How to we take the credit without the 1116?

Re: 1099-DIV Foreign Tax Credit

Falls Church — Tue, 22 Mar 2022 21:22:43 GMT

Also, deleting the 1116 form does not get Turbotax to give you the full credit, so that doesn't solve the problem.

Re: 1099-DIV Foreign Tax Credit

Falls Church — Tue, 22 Mar 2022 23:42:32 GMT

Candace,

I don't know if your situation is the same, but my daughter had a small foreign tax in 2020, but no tax liability, so she was not able to take a credit. Turbotax nevertheless generated a 1116 worksheet for 2020 (just for the file) for the carryover showing no carryover. This year, Turbotax tried to also throw me into the 1116 worksheet and partial credit. I ran her taxes on TaxAct to get the free additional state, and that did give the full credit. I decided to just start her taxes over on Turbotax , this time NOT importing her 2020 information, just putting her personal information, etc., in by hand. That put me to a screen that verified the IRS language you quoted, and gave her the full credit with no 1116.

Hope this helps.

Re: 1099-DIV Foreign Tax Credit

MarilynG1 — Wed, 23 Mar 2022 00:00:44 GMT

If you reported Foreign Tax on a 1099-Div, that amount automatically transfers to the Foreign Tax Credit section.

Then, in the Foreign Tax Credit section you enter the dividend income amount associated with this tax.

However, you can elect to take a Deduction rather than a credit reported on Form 1116. The Foreign Tax is then reported on Schedule A.

Go to the Foreign Tax topic under Deductions & Credits, and Review. Choose 'You have no more foreign taxes to enter other than those already entered on a 1099-Div, 1099-Int..' and Continue.

The next screen says 'Must you take the foreign tax credit? We'll give you another option..'

The next screen says 'Do you want the deduction or the credit?' where you can choose Itemized Deduction.

Re: 1099-DIV Foreign Tax Credit

cbdelatorre — Wed, 23 Mar 2022 22:16:08 GMT

First off thanks to all who responded.

I meet all criteria to default to Schedule A. When TurboTax (downloaded program). Income was passive (ordinary dividends); Foreign Tax is less than $300 and it is reported on 1099-Div.

I answer "No" to the question if I want to use Foreign Tax credit instead of Schedule A

I answer "No" to the question if I want to report additional foreign tax not already included elsewhere.

I have no financial interest nor signature authority over foreign trust, etc.

Despite entering the $299.28 in Foreign Tax on the 1099-Div section, when working on the Foreign Tax line of form, it shows $0.

When I complete the "Smart Check" it still forces me to complete Form 1116.

I deleted the form and checked my work and it still requires me to complete the form.

I am stumped,

Thanks!

Re: 1099-DIV Foreign Tax Credit

rogge1722 — Wed, 23 Mar 2022 22:39:49 GMT

Is line 18 on form 1040 greater than zero and/or do you have any carryovers?

Re: 1099-DIV Foreign Tax Credit

DaveF1006 — Thu, 24 Mar 2022 18:23:19 GMT

As a follow-up to rogge1722 response, if you have a carryover, a Form 1116 is necessary to ensure any future carryovers are applied. Without it, then these carryovers are lost.

If this isn't a concern, try deleting your Form 1116. If in Turbo Tax Online, go to tax tools>tools>delete a form>delete all Forms 1116 including the worksheets. If you are using the software, go to the forms mode, select the forms and delete from the bottom of the page.

Re: 1099-DIV Foreign Tax Credit

ldhollan — Wed, 06 Apr 2022 15:25:51 GMT

Couldn't find the tools, delete form menu.

However, in top right is an icon named forms. Click that an it brings up a list of all forms. Scroll thru and find the form of interest. Use the delete form button at the bottom. Then in top right click on step-by-step to continue using TurboTax

Re: 1099-DIV Foreign Tax Credit

rajeevgupta-leo — Thu, 16 Feb 2023 18:42:02 GMT

I have a 1099-div form with Box 7 Foreign tax paid amount printed as 0.04

then, I imported the 1099-div from APEX Clearing Corp broker and after import was completed in Turbo Tax premier online, it shows Box 7 filled in with $-0.04 (please note the negative sign before the dollar value) automatically, now my question is should this be "-" negative dollar value or should I make this $0.04 instead of $-0.04 in Box 7 of Turbo Tax premier online?

Please advise.

Thanks.

Re: 1099-DIV Foreign Tax Credit

AmyC — Wed, 15 Feb 2023 22:24:10 GMT

The IRS requires numbers be rounded to the nearest whole dollar so zero is the correct entry. Were it not zero, it would be a positive number.

@rajeevgupta-leo

Re: 1099-DIV Foreign Tax Credit

rajeevgupta-leo — Wed, 15 Feb 2023 22:28:15 GMT

Thanks @AmyC

My question was/ is when I imported the 1099-div TT automatically showed Box 7 as - 0.04 (negative) is this negative mark/ symbol correct representation of dollar value in Box 7 meaning the number should be a negative number or not?

As my paper 1099-div shows as 0.04 that is why wondering why turbo tax upon 1099-div import showed -0.04?

please advise.

Re: 1099-DIV Foreign Tax Credit

SForrestLO — Thu, 16 Feb 2023 18:51:22 GMT

Please try importing the information again. See these help articles on how to import.

Where do I enter my 1099-DIV in the TurboTax CD/Download software?

Where do I enter my 1099-DIV in TurboTax Online?