Can not enter foreign tax credit info in the foreign tax credit interview / screens for multiple countries. Bug in the product.

[debanncohen]

How do I enter the foreign income and tax paid information for multiple countries on the foreign tax credit interview screens?  The app is a mess/ does not work correctly. I have just four countries.

This is an unacceptable flaw in the app and should be fixed.

is entering the information on the 1116 form manually a workaround? 

[pk]

@debanncohen , 

(a) what type of foreign income ?

(b) If passive income ( interest, dividend  etc. ) , is the total Foreign Tax paid more then  US$600  ( US$300 for single filer ? -- If so you don't need the form 1116

(c) Are you entering details under  "Foreign Tax Credit " section of  "Deductions and Credits" tab ?  You probably are, but I just wanted to make sure  we are on the same page-- please forgive.

(d) Note that the form 1116 can handle only three different countries per form -- so for four countries  you will need an additional form 1116 ( Copy 2 )

I will circle back once I hear from you --yes ?

[debanncohen]

Yes in the foreign tax credit screen in deluxe online. Passive dividend income from from foreign stocks held by a us custodian, 4 countries., reported on 1099 div.Taxes paid > 600. The ui/ screens allow you to list multiple countries but then can’t accommodate. App text instructions and help are contradictory.

[davidpaulswanson]

I had the same issue.  I finally gave up on it. 

That's a terrible corner of the software to get bogged down in.  It just doesn't work and how to make it work is a black box that's not explained sufficiently anywhere.  I ended up choosing to take a tax deduction instead of the credit which cost me $$.  Good luck.  

[debanncohen]

I'm taking the standard deduction so I cannot  use the deduction method , and have to use the credit. It's not a lot of lost credit at hand... I think this is a known problem as it was broken last year. I think Intuit knows it and using it as a devious way to get people to sign up for expert help. I made it to phone technical support and they mysteriously hung up on me...and did not call me back even having given them my phone number. I will not use turbotax next year. 

[pk]

@debanncohen , while I cannot see your exact situation, I took your general details and  created a return ( I am using  Windows desktop Home and Business with the lates update as of this morning ) with the following details:

(a) Single filer, wages of US$150,000,  no dependents, standard deduction

(b) Dividend income as follows :

 ------------- Box 1 --US$12,000,  Country Japan,               Foreign Tax (Box 7 ) -- US$800

--------------Box 1 --US$ 10,000,  Country Korea(South) ,  Foreign Tax ( Box 7) -- US$500

--------------Box 1 --US$ 6000,     Country Philippines,       Foreign Tax (Box 7 ) --US$200

--------------Box 1 --US$2000,   Country Australia ,             Foreign Tax ( Box 7) -- US$100 

(c) The dividend detail entry was usual, tedious and requires careful follow through.  Just make sure that the "other" and then country is properly entered i.e. NOT RIC

(d) With income entries completed, Turbo took me to "Deductions and Credits", I selected "I will choose what I work on" and then from the "Estimated and Other Taxes paid " group selected "Foreign Tax Credit"

(e)  Turbo then allowed me to select that "I want Foreign Tax Credit" and NOT Deduction.

(f) Turbo then present me with a tabular entry of the countries  involved -- note  here that Turbo presented only three countries filled in --- made sure that all four countries were listed.

(g) Now you have to go through  and answer questions to make sure that  each foreign  country  has the correct amount of foreign income  and then the Foreign Taxes paid ---- this is duplicate information but it must be entered .  It is filling out the form 1116.

(h) Thereafter Turbo goes through the AMT  computation / method selection etc.

(i) At this point Turbo confirms that it has created two form 1116  ( Copy1 and Copy2 ).

(j)  Changed to forms mode to inspect Turbo work --- noted that for both the  Comp 116 wks  ( Copy1 and Copy 2 ) were flagged red ---- need to  select/ mark   "paid/Accrued"  Box  and also paid date --- I selected "Paid" and  paid date of 12/31/2025 for each country.

(k)  Next confirmed that  Schedule-3 does show the total FTC allowable  ( all of US$1600 in this case ) for the year and also that this FTC flowed to form 1040-SR.

The point of this exercise is to prove  that, at least for my scenario  TurboTax performed exactly as expected.  But yes it needs a lot of patience, careful entry and sometimes the questions are a bit abstruse/ unclear.

Is there more I can do for you ?