Foreign Taxes entered on 1099-DIV section not showing up in Estimates and Other Taxes Paid section

[PaulSChapman]

I am using 2025 TurboTax Deluxe (desktop version).

I entered two 1099-DIV forms, each of which had a Line 7 Foreign Tax Paid amount.  However, now when I go to the Deductions; Estimates and Other Taxes Paid section, it is showing I had no foreign taxes entered (it shows $0).  I tried deleting these DIV entries and reentered them, but it still is not recognizing them as foreign taxes entered.

I believe it may have worked initially, and I had selected to take them as an itemized deduction.  However, I later changed my mind and went back to take them as a credit, and after that is when it no longer showed them.

Any recommendations?  Worst case I will just delete my 2025 file and start over, but hoping I don't have to.

Thanks!

[DaveF1006]

First, delete the Form 1116 and the worksheet associated with it if its listed in your forms. You can do this by.

1. If working in TurboTax Online

• Go to Tax Tools
• Tools
• Delete a form
• Delete forms 1116 and the worksheets if they are there

2. If you are in a desktop version, go to the forms mode in the program.  Find the forms and delete them from there.

3. Re-enter the 1099 DIV's. As you re-enter these, note the following.

• Go to wages and income Wages & Income.
• Re-enter your 1099-DIVs. Ensure you enter the Box 7 amount.
•  Immediately after entering the 1099-DIV, TurboTax will ask: "Tell Us About Your Foreign Dividends."
• You must enter the "Foreign Source Income" here (usually the total amount of the dividend that came from a foreign country). If you leave this as $0, the credit section will later report $0 because the software thinks you have "tax paid" but "no income" to justify a credit
• Usually, this information required here is listed in a disclosure statement that came with the 1099's.

4. Revisit the Credit Section

1. Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Tax Credit.
2. When it asks if you want the Deduction or the Credit, select Credit.
3. The software should now "see" the Box 7 amounts from your 1099-DIVs.
4. Finish out the section. Usually only requires a check mark indicating these came form 1099 DIV's.

[PaulSChapman]

Thanks Dave.  Unfortunately, this step does not happen after reentering the Dividends:

• Immediately after entering the 1099-DIV, TurboTax will ask: "Tell Us About Your Foreign Dividends."

Nothing happens after I enter the dividend with a positive foreign tax paid on Line 7.  It just brings up the next screen asking if any of these unusual situations apply (and it lists 3 scenarios which did not apply, so I clicked on "None of the Above").  Then it saved it and moved on.  When I go to the Foreign Tax Paid section under Deductions and Credits, it still shows $0 foreign tax paid.  I know this worked last year, so not sure why it is not working this year.

I did go the forms for these 1099-DIVs under Forms and tried entering info on line 7d (Foreign source income) with the amount of the dividend, and line 8 with the country.  However, when I went back to the Deductions section, it still shows $0 foreign tax paid.  There is no form 1116 to delete either.

Is there any more info needed in the forms I can enter directly to make this work?  Again, I am not sure if it is because I originally said take it as an itemized deduction, but then later went in and changed it to a credit.  Maybe that caused a glitch in the logic?

Thanks.

[DaveF1006]

Since you are using TurboTax desktop, check if the Foreign Tax Credit is there despite what the summary states.

Go to the forms mode and look at Schedule 3. Look at part 1 line 1, and see if there's a foreign tax credit listed. If so, then your foreign tax credit is reported correctly.  If you don't get a credit, there may be other reasons why you don't get one. For example, you might not have enough tax liability to apply the credit.

I checked our desktop program and it handles this information correctly.

[PaulSChapman]

Thanks - your point about not having enough tax liability to apply the credit is probably it.  I have not received all my 1099-DIVs yet, so once I get them all entered it will probably show the foreign tax credit.

Thanks for all your help!