2082275
Got DIV with foreign tax paid from multiple countries across 2 1099-DIVs form different brokers. Turbo tax shows both 1099-DIV (broker1, broker 2) entries first time, and after allocating the foreign income for one broker for one country, next time for next country it stops showing one brokers 1099-DIV.
So I am stuck since the country for which foreign tax credit needs to be claimed, the associated 1099-DIV is not showing up. (also allocation is partial so there is definitely more balance left to allocate for remaining countries).
Not sure how to proceed from here.
Using software install on laptop.
You'll need to sign in or create an account to connect with an expert.
TurboTax only allows you to select one country per payer, unfortunately. You might want to sum up the number and put it under one country. Here is the discussion, click here: Multiple countries
We are aware of the issue and have submitted it for further investigation.
Here are the steps:
You will first need to enter 1099-DIV into the program.
Then, you will enter info under "Foreign Tax Credit" section. Follow here:
If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return. To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit.
@LinaJ2020 Out of curiosity, does this issue also apply to TurboTax download?
"We are aware of the issue and have submitted it for further investigation. "
One year later and I guess the investigation lead to nowhere, it's still the same issue.
It's quite frustrating that Turbotax can't deal with such a basic issue - it must affect quite a significant number of customers using Turbotax premier, since owning multiple dividend-paying foreign stocks in a portfolio of one broker is really not such an exotic use case.
@modyssic Think we can use Various instead of filing 1116 form since its foreign tax credit is less than 300 (600 MFJ) income. Seems 1116 is required only if its above this limit. Would have been good if brokers themselves indicated various when tax credit is below this threshold. (As well as, always good if turbotax resolved this issue even if broker doesn't indicate various)
Keep in mind also, a Form 1116 is also required if you have a Foreign Tax Carryover this year and you wish to carryover the unused portion of the credit into future years. This is true for any amount of foreign tax credit that can't be applied in the current year.
Thanks @DaveF1006 for the info,
Am guessing most of people with low amounts may not carry over.
Wondering on reasons when it gets carried over. Not sure if people carry over due to large amount that can't be claimed in one year OR low income in a year and delaying it to next year might benefit in some way. Guessing expats might have more FTC to claim.
It's not really a choice of when to use it, it's whether or not you are able to use it. If you have a FTC that is more than you are able to use in a given year, then you can choose to either carry it back a year or forward for 10.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
shanesnh
Level 3
nakoenig360
New Member
don-bobertz
New Member
Matilda
Level 3
gjgogol
Level 5