Form 1116 Foreign Tax Credit: Qual Div and LT Cap Gains should have a value of at least $3000

[k12120]

I have doubled check my 1099-DIV entries. There are two 1099-DIV entries that report these info:

1)

Total ordinary Dividends = 6627

Total Qualified dividend = 5165

Total foreign taxes paid = 238

Total foreign sourced income = 4468

both accounts set to country as "various"

2) I got my supplemental 1099-DIVs and they state the total foreign Qualified DIV is $1,647 . 

3) I enter $1647 and get smart check error saying that i need to have value of at least $3000, how can TT enforce this?? Did i enter something wrong?

[NCperson]

@k12120 - please repost the entries with the line numbers from the 1099-div forms. 

If the foreign taxes paid are less than $300, form 1116 is not required. 

Total ordinary Dividends = 6627 (line 1a)

Total Qualified dividend = 5165 (line 1b)

Total foreign taxes paid = 238 (Line 7)

Total foreign sourced income = 4468 (supplemental information)

both accounts set to country as "various"

what are the line items related to the $1647? you state "supplemental" - is that a tax form? what are the line numbers of each entry? or is just detail that supports part of line 1b? 

[k12120]

I should mention i have other foreign income thats why i need form 1116 even if the taxes paid on dividends didnt exceed $300. 

The "supplemental" is 1099 Supplemental to the DIV income and has these lines:

The amount of foreign sourced income included in Box 1a of your 1099-DIV is = 4468

The amount of foreign sourced income included in Box 1b of your 1099-DIV is =1647

[NCperson]

@k12120 do not enter this supplemental form as an addtional 1099-DIV. 

on what form is TT triggering the error? 

[rogge1722]

From the 1099-DIV Worksheet.

The minimum foreign qualified dividends = 1b +7d -1a.

The following procedure provides more details.

Open a new spreadsheet.

Column A is used  for both qualified and unqualified dividends, aka. “Ordinary dividends”.

Column B is used for qualified dividends only.

In cell A1, insert the worldwide ordinary dividends. This is the amount in the 1099-div, box 1a.

In cell A2, insert the foreign ordinary dividends. This amount is derived from the broker’s supplemental info.

In cell A3, subtract A2 from A1.  The result is the U.S sourced ordinary dividends.

In cell B1, insert the worldwide qualified dividends. This is the amount in the 1099-div box 1b.

In cell B2, insert the foreign qualified dividends. This amount is derived from the broker’s supplemental info.

In cell B3, subtract B2 from B1. The result is the U.S. sourced qualified dividends.

Each cell in column A must be equal to or greater than the corresponding cell in column B. If that is not the case then there is an error. Recheck all entries.

[k12120]

thank you all! i now realized my box 7a in 1099-DIV was wrong. I added my foreign sourced qualified and ordinary dividends together in box7a, when it qualified dividends is a subset of ordinary dividends