I earned interest from a foreign bank, which is entered in schedule B, line I. They don't send 1099-INT. I provided foreign bank detail. But it can't get me to Form 1116.

[rogge1722 · Accepted solution]

Delete the info inserted into schedule B. To report  the income, go to the Wages and Income and click on the 1099-INT button. Bring up a blank 1099-INT. Fill in the name of the payer, interest paid in box 1 and the foreign tax paid in box 6. Click continue and finish up.

For the credit, we need to know if you qualify for the exemption.  If you are filing Single, is the amount $300 or less or if married filing jointly, the amount is $600 or less.  With that info, we can continue.

[bark88]

Thanks for the email response.  I have followed the instruction.  The foreign tax paid was $1171, which is greater than $600 for a joint filing.

[bark88]

It took me to use simplified calculation.  I said yes.  But, it went back to Deductions and Credits.  Still it shows Foreign Taxes paid = $0.

[rogge1722]

Bring up the 1040 worksheet. Look at line 11b. Is it greater than zero?
Also make sure you have the foreign tax paid in box 6 of the 1099-INT.

[bark88]

Thanks for your reply.  The line 11b is not greater than zero. Box 6 of the 1099-INT is filled out.  Form 1116 (Copy 1) Part II, line 8 shows correct foreign tax paid amount.  Which is supposed to be same amount on Part III, line 9.  But, it is blank (zero amount). Therefore, Part IV line 33 shows amount $0, that is the tax credit.  So, it seems there is some issue. I have emailed this issue to TurboTax.

[rogge1722]

If line 11b is zero then you have no tax due. Thus there is no credit of any kind available.