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posted Feb 27, 2021 3:07:53 PM

Form 1116 - T Tax is asking me for a detailed explanation on line 3b column A. What do I enter here ?

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2 Replies
Level 9
Feb 27, 2021 4:10:35 PM

Enter into the explanation statement what the deduction is for.  If the deduction is for an alimony payment, just type in "alimony payment."

Level 8
Feb 28, 2021 3:09:37 PM

Form 1116 is specifically used to report Foreign Taxes Paid and this form is what is used to request a credit for these payments. Typically, on your 1098, if you have any investments in foreign accounts that you were paid dividends on (look at your detailed 1098 pages and "eyeball" through it to find the section that has amount(s) in the "Foreign Taxes Paid" column. Then, look at the investment that this is specifically related to (will be on same line as the foreign taxes paid). Then, go to your detail of dividends paid page(s) and find this specific investment - and this is the amount of dividends you would report on the 1116 that you would also either find (if you've already entered it elsewhere - most likely on the "Dividend Income" Input page) or enter the foreign taxes paid - use 12/31/2021 as the "Paid Date" - it is a default date, so to speak, that is to be used there for the IRS to specify the year in which the USD were paid out to the Foreign Location.

 

Intuit and The Form 1116 - Foreign Taxes Paid   - a lot of detail, but if you scroll down a little you will find the section that I believe specifically relates to your situation.