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Diross
New Member

Do I have to take a credit for foreign taxes listed on Form 1099-Div (it is only $42)?

 
1 Reply
LinaJ2018
Intuit Alumni

Do I have to take a credit for foreign taxes listed on Form 1099-Div (it is only $42)?

As a general rule, you  must choose to  take  either a  credit  or a  deduction  for all qualified  foreign taxes .  Between the twos, the credit is more beneficial to you.  It is a dollar by dollar reduction of your tax due.  For example, if your tax due is $400, the program would subtract your credit directly from your tax due.  ($400-$42=final tax due )With deductions, you can benefit it only if you itemize and it reduces your taxes based on your tax bracket. 

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