Form 1116 does not show up in the final tax return

[bizbeh]

Although I completed all the steps for Form 1116, it does not appear in the final tax document, and I did not receive any credit for the taxes I paid.

[pk]

@bizbeh , your post while concerning ( you may be missing FTC), does not give enough information about the actual facts & circumstances to understand what went wrong.  So can you tell more about your scenario:

(a) You a US person ( citizen/GreenCard/Resident for Tax Purposes ) with a US tax-home ?

(b) What type of Foreign source income ( dividend, Interest, sale of assets, wages, self-employment etc. etc.)?

(c) If passive income  like dividend/interest etc., how was it reported to you --- 1099-DIV/INT etc. , Broker's consolidated statement or what  ?   How many countries are involved ?  Or is it a mutual fund or similar ?

(d) Did you have  carried  forward  Foreign Tax Credit ?  Or is this your first year with Foreign Taxes paid ?

(e) Your filing status ?

(f) Total amount of Foreign Taxes paid -- if reported on 1099 ---- this is only important  if  you are eligible for exercising section 904(j) i.e. FTC without the limitations imposed by form 1116.

Please answer my questions --ok ?

[bizbeh]

Hi 

1- I am a "Resident for Tax Purposes"

2- my foreign income was rental property in Canada

3-I reported this income in Canada and paid tax for the income to Canadian Government ( I also prepared Schedule E) 

4- I didn't carry forward and this is not the fist year, I filed with HRBlock 2 years ago and they had my 1116 form prepared properly 

5-I filed married jointly and I filed last night without foreign tax credit (as I was waiting for this issue to be fixed for weeks (I also called Turbotax and talked to a product manager)

6- total amount was 775 USD ( greater than 600)

[pk]

@bizbeh , thank you for your answers to my questions.  Yes it does seem you should have been able to  claim foreign tax  credit. 

 Since this  is foreign rental income,  was your   rental income  as shown on Schedule-E  ( per US rules ) a positive amount ?   I ask because  I saw another post  that had a similar situation  -- foreign rental income but  while per the foreign country rules there was positive / taxable rental in come, per US rules and with depreciation, the US  taxable  income was negative/loss.  This created a situation where there  was NO foreign source income  to be taxed by the US  ( NIL doubly taxed income ).  So none of the  Foreign Tax could be  used for credit.   Are you in a similar situation or do you have a positive  rental on Schedule-E ?

[bizbeh]

yes, my rental income came as negative once I added depreciation(and that's why I filed my tax return without foreign tax credit form 1116 since it makes no sense to get credit and report negative income) but note that prior to adding depreciation, my income was positive and still form 1116 wouldn't properly appear in my final return, that's why I believe it's a bug on turbotax side