Foreign tax credit

[KREC]

3 of my brokerage 1099s show foreign tax paid.  The back pages also individually list countries.  Do I have to enter each country separately?  There is a RIC option, but I don't know how/if that pertains to me? Thanks.

[LoganathanB]

Yes, you have to enter each country separately

If you have to report income from more than one country on Form 1116, complete a separate worksheet for each country.

Use only the income from that country on line 1 of the worksheet.

• Open your tax return
• Enter Foreign Tax credit in the search box on the right side
• Jump to Foreign Tax credit
• Enter your information. country wise.

Click here for more information

Form 1116

[KREC]

Thanks. Since I have three accounts with same brokerage firm does each country have to be entered three separate times or does the sum of all foreign tax in one country get entered once?

[JohnW152]

Enter the sum of foreign tax in one country, once.

Please see the Note above Part I on Form 1116: If you paid taxes to only one foreign country or U.S. possession, use column A in Part I and line A in Part II. If you paid taxes to more than one foreign country or U.S. possession, use a separate column and line for each country or possession.

[KREC]

I’m still trying to understand how to conduct the step-by-step on a foreign tax credit. I have two broker statements with RIC (one has one RIC entry, the other has two). Then my third broker statement has several foreign countries listed.

1. Do I select RIC once on the drop down even though there are three separate RIC entries across two different 1099s?

2. when I go to start entering the foreign income for each category it asks me to select which 1099. All 3 1099s came over as imports and all have identical titles. How do I deteternibe which one is which?

[ErnieS0]

Select RIC for the 1099-DIVs that have RIC and enter individual countries for the once that have individual countries listed.

If you can't tell which account is which, you can do back to the dividend section and rename them, for example, by including the last four digits of your account number.

1. Type dividends in Search in the top right
2. Click Jump to dividends
3. Select Review net to your account and change the name

[KREC]

Thank you! Also on RIC zone of them has a different amount under qualified and total. I assume I’m supposed to use the qualified foreign source income amount not the total foreign source income amount?

[KREC]

As much as I hate leaving money on the table, I’m beyond frustrated trying to get each country documented. I go through the drop down menu and select each country but then when I start entering the dollar amounts, the program erases all of the previously selected countries. If I try to just select a country, put in the foreign income, then when I go back and select another country, the 1099 with the countries is no longer available to select, only the other two 1099s with the RIC entries. 

[DaveF1006]

It depends. If there is more than one country listed for the non-RIC 1099 DIV, select various in the drop-down menu.

@KREC