turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

taxuser81
Returning Member

Foreign Tax Credit (Form 1116) and US Dividends Re-sourced via Treaty for Expat

I am a US citizen, resident in Canada. I entered my US interest and dividends from 1099s into Turbotax. Then I filled out the Foreign Tax Credit / Form 1116 for "re-sourced income by treaty" with the total of the 1099s and my taxes paid to Canada. (I also filled out separate Form 1116s for Canadian wages and interest.)

 

There is a US-Canada tax treaty allowing re-sourcing of US interest and US dividends to avoid double taxation. My understanding is that the tax on US interest is owed first to Canada, but the US taxes 15% of my US dividends first and then Canada taxes it after. Yet Turbotax calculates that I owe $0 to the US based on the taxes paid to Canada. Is there a setting in Form 1116 or elsewhere that I'm missing that would calculate the US tax owed correctly?

 

Thank you.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question