Foreign dividends are not separately broken out on my Schwab 1099-DIV so how can I get turbotax to prepare form 1116 so that i can carryforward unused foreign taxes paid?

[DaveF1006]

Foreign dividends are usually not broken down separately on the 1099 DIV.  The answer is usually disclosed in a supplemental disclosure form that came with your 1099-DIV and Schedule B. 

When you report your 1099 DIV and report that a Foreign Tax was paid in Box 7, there will be follow-up screens that ask "Tell us about your foreign dividends," You must enter the amount of Foreign Source Income found in your Schwab supplemental forms.The forms may list a dollar amount or a percentage. If it is a percentage, you must multiply the percentage by the total ordinary dividends to arrive at a dollar amount to report. 

When you prepare the section to claim your foreign tax credit, the information will be there when you link the country and select the 1099 DIV where the foreign income is reported.

[rfisher71]

I will confirm what @DaveF1006 said plus add that I have Schwab but no foreign dividends in Schwab. I do have Interactive Brokers and they provide both an HTML and CSV dividend report. The CSV dividend report comes in handy if you have a lot of dividends and a lot of countries. I put some simple SUMIF formulas to sum dividends from each country (I had ten countries). 

My problem now is that the Form 1116 step by step entry isn't working as I recently posted at https://ttlc.intuit.com/community/taxes/discussion/re-foreign-taxes-paid-form-1116-not-working/01/37...

[DaveF1006]

Yes, if you have the software download, you can enter this information on the form(s) itself.  Here is a step by step method of doing this. 

1.  Go to the forms mode in your return
2. If there are no Forms 1116, select open form.  
3. Type in 1116 in the search
4. When you see Form 1116, select Form 1116 in the drop down
5. Now there should be a form 1116 that will appear in the right-pane of your program.
6. Now click on an empty box (not the shaded area) in Column A that is on the Gross income line. This will produce a magnifying glass,
7. Click in that box under Column A this will produce a Foreign Income Tax worksheet.
8. When this appears, first check the passive category income box.
9. Now go down to line 1G and type in from 1099's, then Go to Columns A, B, C and enter three countries in this form and report the gross income from each country.
10. Then go to part 11 and enter the foreign taxes paid for each of the countries.
11. If you have carryover amounts from past years you will enter those at the bottom of the form. Close this form
12. Now repeat step 2 to generate another Form 1116. Once the form appears in the search you will want to go to the bottom to create a new copy. You can call it Form 1116 (Copy2) or just copy 2. Then select open form
13. Once the blank 1116 is shown, repeat steps 6-11.
14. Repeat this process until all ten countries are reported and segregated in the form 1116. You should have 4 forms reporting all ten countries.

Remember, if you do this, every time you add a form, You need to give a unique name such as copy 1, Copy 2 and so on. Let us know if this is successful.

[user17712903551]

Thanks for the responses, however it does not appear to work in my situation.   

Since I have paid no taxes in 2025 and owe no taxes in 2025, I cannot use my foreign tax credits and want to complete form 1116 to carryover those credits to 2026.    My Schwab 1099-DIV does not ask me to complete box 8 and disclose my foreign dividends included in the 1099.      Since it does not ask me to breakout on my 1099, the foreign tax credit section does not ask me any questions and it just says I am not eligible to use the credit and no Form 1116 is prepared.

Only when I add another factitious 1099-DIV and report additional factitious dividends and foreign taxes and now own federal income taxes does it ask me to breakout the foreign dividends earned on this fictitious 1099 and now also the real Schwab 1099-DIV.    With this factitious additional income, I do get the additional questions in the foreign tax credit section and I am able to breakout foreign income and it appears get Form 1116 completed successfully.

But of course, when I delete this factitious 1099-DIV and just report the real Schwab 1099-DIV, I no longer get the foreign dividend question on the 1099 and the foreign tax credit section does not ask me any questions and it just says I am not eligible for the credit and no Form 1116 is prepared.

So how do I get a form 1116 prepared based upon the above situation for my foreign taxes paid on my Schwab 1099-DIV and carryforward unused foreign tax credits?

[rfisher71]

I understand (or think I do) your problem now. Apparently you didn't use TurboTax in the previous tax year (or for some other reason) so it doesn't remember your carryover from previous years. You can go to "forms" mode, click on Form 1116. Part III Line 10 of Form 1116 is where carryover from previous years is entered. The form says this number comes from Schedule B, line 3, column xiv but that doesn't make sense to me because I don't see that on the 1040 Schedule B. You could look up the actual Schedule B from the IRS to make certain that the one in TurboTax is not outdated or incorrect. Anyway you could enter it into Form 1116, Part III, line 10 and include an explanatory note. Maybe someone else will know where this value comes from (to me it should originate from Part III, line 10 and not anywhere else) but that is just my guess. I do have a carryover this year so when I get the Form 1116 to work for me I will see if it includes the carryover (it should because the step by step has said that I have a carryover) and where the numbers come from.

[rfisher71]

Thank you for the suggestion. I will give this method a try although it is frustrating that the "step by step" method doesn't function properly. It will probably take me a couple of days to get to it. 

Just one comment. You answered my post in another person's post so I wasn't looking for it here although I did get an email notification of your response.

Thanks again.

[user17712903551]

Unfortunately the forms mode does not exist in Turbotax Online only in Turbotax Desktop.  Any other suggestions? 

[rfisher71]

I think that you can convert to the downloaded version by doing an import or you can keep the fictitious 1099 or there might be some question such as "I need to adjust the values on the 1099" or similar, again including an explanatory note. I have to create fictitious deductions for healthcare when TurboTax automatically assumes that my HSA distribution was used to reimburse current tax year expenses (instead of previous tax year expenses).