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Foreign taxes not calculating properly for a refund.

There is an issue in TurboTax causing Foreign taxes paid on passive income to not total properly.  The taxes come thru on a download from the brokerage house on a 1099-DIV along with the Foreign income which is only about $600.  How do I contact someone to get this fixed.  I do not need a tax expert, I need Intuit to fix the issue in the program so I can get the greatest refund I am entitled to.  

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6 Replies
DaveF1006
Employee Tax Expert

Foreign taxes not calculating properly for a refund.

To clarify, can you be more specific with your issue?

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Foreign taxes not calculating properly for a refund.

Specifics are as follows

I have passive  foreign dividend income and foreign taxes coming thru on a 1099-DIV.  Total income is $602.73 and taxes paid are $62.93.  Based on these amounts and passive income only, form 1116 is not required. The information pulled from the brokerage downloaded correctly but I am not being credited for the foreign taxes being paid as the $62.93 should be in my total Federal refund and it is not. 

I made a copy of my tax file and tried filling out form 1116 and the worksheet on the 2nd copy .  It did not make a difference as the foreign taxes still did not show in the totals.  

Please advise if the TurboTax software can be corrected for this error?

MelindaS1
Employee Tax Expert

Foreign taxes not calculating properly for a refund.

If this is an outstanding system issue, it may be fixed soon; due to system updates and recent tax law changes, returns including foreign tax credit and/or Form 1116 should not be filed at this time. The expected date of availability is 2/27/2026, Friday. On or about that date, you will be able to complete and e-file your tax returns. We appreciate your patience while this is resolved. 

 

If your issue is not resolved by the foreign tax credit software update, then you can @ one of us in this thread to begin troubleshooting. 

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Foreign taxes not calculating properly for a refund.

I updated the software for the premium edition with update dated 2/27/26. I went back into EZ Step and the foreign tax credit is still not calculating properly. Please advise whether the 2/27 update was supposed to correct the issue or if there is another upgrade coming? If another update to fix the issue is coming when will it be available?

Thank you 

DaveF1006
Employee Tax Expert

Foreign taxes not calculating properly for a refund.

It depends. It is possible you may not have had enough tax liability to offset this credit. The Foreign Tax Credit is a non-refundable credit that can reduce your tax liability to zero, but it cannot give you a refund for any "leftover" amount.  Check line 16 on your 1040 to see if it is zero or a low amount.  

 

If an amount is listed, look to see if there's an amount on Line 17. This is where your Foreign Tax Credit will be applied to your tax return if there was an amount reported on line 16. This comes from Schedule 3, where the Foreign Tax Credit will be reported‌.  You can also look at Schedule 3, line 1, to see if there's a Foreign Tax Credit listed there.

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Foreign taxes not calculating properly for a refund.

@MelindaS1, has the TurboTax update for Form 1116, expected on 27 FEB 2026, now been released? Can you please describe the issues that the update has resolved?

 

Thank you for your assistance.

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