Foreign tax credit is greater than tax paid.

[stinnsk]

I have an $8 foreign tax paid by a mutual fund and reported on a 1099-DIV.

I input the 1099-DIV info and went through the Turbotax question and answer screens.  Form 1116 shows $8 as he total foreign tax paid, but $16 as the credit on line 35.  Then schedule 3 line one also shows $16.

Can this be right?  I would have expected the credit to be limited to the actual tax paid.

Thanks in advance for your consideration,

Steve

[stinnsk · Accepted solution]

I think I figured this out.  The form 1116 comp worksheet showed the $8 foreign tax paid, but evidently this is only for foreign taxed not already included in the 1099-DIV.   Consequently, this resulted in double dipping.

When I deleted this entry on the 1116 comp worksheet my foreign tax credit dropped to $8 like it should.

Thank,

Steve