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F1116 and foreign tax credit

I have passive income (interests) generated from a foreign bank account in country X. The bank has withhold tax in country X but I'll get refund for all of it when I file taxes in country X. None of this is reflected in my 1099.

In addition to the above, I had invested in international mutual funds in a brokerage account in the US. My 1099-DIV reflects $30 as Foreign tax paid (Box 7 Form 1099-DIV). 

In my scenario, I need foreign tax credit only on $30 reflected on my 1099 and nothing for the withholding in country X. Do I need to file F1116 or just mentioning $30 on line 48 Schedule 3 would suffice?

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1 Reply
KarenJ
Intuit Alumni

F1116 and foreign tax credit

When you enter your 1099DIV, enter the $30 foreign tax credit in Box 7.  If this is you only foreign tax (or if your total passive foreign tax is $300 or less if single, or $600 or less if married filing jointly), you do not need to file Form 1116.  TurboTax will automatically give you the passive foreign tax credit.

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