Foreign Taxes Paid Errors in TT for Mac

[dstautz1]

I have foreign taxes paid below the MFJ limit of $600 for not filing Form 1116. However, something is wrong in TT and I cannot find it. The questions tried to get me to complete many things for claiming the simple credit. The Copy 1 worksheet shows all of my dividend income as foreign source, which is grossly incorrect and puts it to the Form 1116 math. This worksheet shows my imported taxes paid from 1099 Div and shows it as all passive income. It also shows that the foreign taxes paid were all "Utilized" but nothing shows on Schedule 3, Line 1. This is likely due to the system assuming all of my dividends on the 1099 are foreign sourced. I have not been able to figure this out for over a week. I believe there is a glitch in TT for this section, or a corrupted file occurred without error notice. Do I have to deleted the whole file and try starting over from scratch to correct this. I have never had this problem in the past with TT for Win.

[AmyC]

Your 1116 has decided it needs to hold information and sometimes importing a 1099-DIV will make the program confused into thinking it is all foreign. Follow these steps to fix your synchronization issue:

1. Switch to Forms mode
2. Delete all the worksheets that go with the foreign tax, so Form 1116Wks definitely must be deleted. 
3. Delete Form 1116
4. Look at the 1099-DIV worksheet, anything red? Delete it
5. Open the Federal Information Worksheet
   1. Scroll down to electronic filing Part VI and find Foreign Tax Credit
   2. Uncheck the box that says Check to form Form 1116
6. Go back to step by step mode
7. Go to wages and income, to your 1099-DIV
8. You may need to import or manually add
9. When asked about foreign dividends, select RIC (regulated investment company) or Various
10. Foreign source income - enter the portion actually from foreign sources - found in your supplement. This can not be blank and is not the dividend amount.
11. Go to deductions and credits
12. Locate Estimates and Other Taxes Paid
13. Select Foreign tax credit
14. Do you want the deduction or credit? Select credit
15. Was your foreign income under $600, select Yes

[dstautz1]

This helps somewhat. I had decided to start with a fresh return file and redownloaded TT for Mac also. I got down the road back to the step by step to foreign taxes paid. As I went through the questions all was normal, but it never asked me the questions for foreign income as it should. Then the amount of the foreign tax credit showed by was less than half of what was on the 1099Div's. I have not gone to forms view yet to figure this out yet as I am MFJ and are less than the $600 safe harbor.

Why would TT not ask the standard questions about country in the step by step view? I am still convinced that the TT for Mac version is not programmed correctly as many years of using the Win version never resulted in such issues.

[DaveF1006]

To clarify, did you performs the steps offered by @AmyC in her above post? As you enter your 1099 DIV and entered a foreign tax in Box 7, there are followup questions that ask about your foreign dividend amount. This is in steps 9-10 in Amy's post. In that section, there is a drop-down that you can select which country this originated from.