FTC/ 1116 how to enter FT when taxes not deducted at source

You would bring up a blank 1099-DIV and/or a 1099-INT whichever applies.  The payer is the bank/brokerage. For a 1099-DIV, insert into box 1a the total dividends (ordinary) paid.  In box 1b insert that part of box 1a that is qualified.  In box 7, insert the foreign tax paid.  TT uses that info to fill out schedule B and  also sees the foreign tax paid in box 7 when you go thru the foreign tax credit interview.

You will need to first enter a 1099-form entry for your investment to pay US taxes.  Then you will go through the foreign tax credit section to claim the credit.  Here are the steps:

 

To enter your 1099 info, here are the steps:

1. Sign in to your account and select Pick up where you left off
2. From the upper right menu, select Search and type in 1099div or 1099 int and Enter
3. Select the Jump to 1099
4. Follow prompts to enter info( Enter as if you received one )

 

Then go through the foreign tax credit section, here are the steps:

 

In TurboTax online,

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• Choose the Income Type, select "Passive Income"
• On screen, "Country Summary", add a country to continue
• Follow prompts

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  If you can't claim a credit for the full amount of qualified foreign income taxes you paid or accrued in the year, you're allowed a carryback and/or carryover of the unused foreign income tax, except that no carryback or carryover is allowed for foreign tax on income included under section 951A. You can carry back for one year and then carry forward for 10 years the unused foreign tax. To read more, click here:  https://www.irs.gov/taxtopics/tc856