Foreign Tax Credit

[jawooda2]

One of my 1099DIV's shows Foreign Tax Paid of $7.00 which I entered into box 7 as directed.  I take the standard deduction and do not want to apply for a Foreign Tax Credit.  It is directing me to obtain a form 1116 which is not available at this time.  Is there a way for me to skip this credit and file my return since it is such a small amount? 

[DanaB27]

Yes, since it was reported on Form 1099-DIV, you don't need to file Form 1116, provided that any dividends came from stock you owned for at least 16 days.

Please see Claiming the Foreign Tax Credit with Form 1116 for details on when you can claim the Foreign tax credit without Form 1116.

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “foreign tax credit”
3. On the "Tell Us About Your Foreign Taxes" screen select "you have no more foreign taxes to enter than on the 1099-DIV" and "You have no foreign tax credit carryover"

[jawooda2]

I continue to have a single error when I run tubotax review regarding the $7.00 foreign tax reported on my 1099 DIV.  It is taking me to a form 1116 part II to fill out.  I do not know what to fill out on this form.  Since the tax paid is less than $100 for a single filer, can I just skip form 1116 and proceed with filing my return?

[MayaD]

Yes. You can delete the form.

To delete the Form 1116 from the program, follow here: 

1.  In the program, to your left,

2.  Select Tax Tools, click on the drop down arrow

3.  Select Tools

4.  Under Other helpful links, choose Delete a form

5.  Select Delete next to Form 1116 and Continue with My Return

Generally, you must enter in Part II the amount of foreign taxes, in both the foreign currency denomination(s) and as converted into U.S. dollars, that relate to the category of income checked in Part I. Taxes are related to the income if the income is included in the foreign tax base on which the tax is imposed. If the foreign tax you paid or accrued relates to more than one category of income, apportion the tax among the categories. The apportionment is based on the ratio of net foreign taxable income in each category to the total net income subject to the foreign tax.

Instructions for Form 1116

[jawooda2]

I followed your instructions and now I'm getting an error code 25300 and can't get out of the forms screen.  This is the third time this week that I have tried to deal with $7 foreign tax paid problem.  I have about had it with Turbotax at this point!

[RobertB4444]

Please just delete the $7 from your 1099-DIV entry.  If you tell the program about the credit it has to give it to you.  It doesn't have a choice.  So delete the $7 foreign tax paid and you have no issue.