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newood1
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Foreign tax credit "select all countries to which you paid foreign tax on dividends" doesn't work

Foreign tax credit "select all countries to which you paid foreign tax on dividends" doesn't work. I tried several times to select multiple countries and TurboTax keeps deleting all but one country. Also, my foreign taxes are less than $600 so why do I have to file Form 1116?

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Foreign tax credit "select all countries to which you paid foreign tax on dividends" doesn't work

First, you do not need to fill out Form 1116. You can choose instead to include the taxes on Schedule A. Schedule 1116 is clearly a more difficult process, but it will provide a larger deduction. Which form you use is simply a personal choice and does not relate to the amount of foreign taxes paid. If you do choose Form 1116, you can include all foreign taxes on the same form as long as all the income (for which foreign taxes are deducted) is considered passive; e.g., stock dividends. If more than one country is represented, simply choose "various" from the drop down list. If the foreign tax derives from mutual fund income, you should list this in a separate column and choose "RIC" from the drop-down menu.

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