My husband sold some foreign mutual funds last year and capital gain tax was withheld directly by the foreign country. How do we get credit for these taxes?

kbcm1 — Thu, 06 Jun 2019 09:13:52 GMT

I do not see an option when I enter the sale information, nor under the form 1116 section.

First, you need to be sure you've entered the Foreign Tax...

KittyM — Thu, 06 Jun 2019 09:13:54 GMT

First, you need to be sure you've entered the Foreign Tax you paid in the 1099-DIV interview. To enter this in TurboTax,

In your Federal return, choose the tab for Wages & Income, then scroll down to Dividends on 1099-DIV and click Edit/Add
On the page Here's the dividend info we have so far Edit or +Add another broker or payer if you have not yet entered the 1099-DIV
On the page Let's get the details from your 1099-DIV or brokerage statement mark the check box under Box 1b - Qualified dividends that says My form has info in more than just these boxes (this is uncommon).
Enter your Foreign Tax Paid in Box 7 and Continue to complete the section

Then, while the software says, "If you have an entry in box 7 of your 1099-DIV, you might not have to do anything about it," you'll likely have to visit the Foreign Tax Credits section under Deductions and Credits to enter the information required by the IRS, because there isn't a box for the foreign income reported on the 1099-DIV in the software. You should be able to find the income on which the foreign tax was paid in your Form 1099-DIV details.

In the Foreign Tax interview, on the page Tell Us About Your Foreign Taxes, choose the first option.
Continue through the interview, answering the questions. Your "Country in which foreign tax was paid" when asked, should be answered "RIC" if it was from a Regulated Investment Company or Mutual Fund
Continue through the end of the interview. Some information may be pre-filled. Be certain it is correct. The default payment date for RIC/mutual funds is 12/31, so do not change that date. If you review your entries, they will be cleared and you will have to enter everything again, so I suggest you skip that step unless you think you made a mistake.

This should resolve your issue.

topic My husband sold some foreign mutual funds last year and capital gain tax was withheld directly by the foreign country. How do we get credit for these taxes? in Deductions & credits

My husband sold some foreign mutual funds last year and capital gain tax was withheld directly by the foreign country. How do we get credit for these taxes?

First, you need to be sure you've entered the Foreign Tax...