If you are referring to entering a small amount from Form 1099-DIV, then
I recommend you include the foreign tax paid as a credit in two steps.
First, report it on the form as received.
Second, utilize the Jump to link described here: Where do I enter the foreign tax credit (Form 1116) or deduction for 2019?
Be sure if you are importing a 1099(s), that you fill in all 1099 -DIV information under income for each 1099 received under the edit in step by step. Do the same for the foreign taxes paid under deductions in step by step, filling in the total income for each 1099. This will fill in the form 1116, consolidating multiple 1099s. When you've done that, go back to forms, and, under the form 1116 comp worksheet, check the box (if it's different) for income adjustment for qualified dividends. Put the total amount for qualified foreign dividends.
If you import the data then complete the information for foreign taxes paid on the form 1116 and it's worksheet you will have an error that's impossible to resolve, despite speaking to turbo tax. They haven't a clue on how to fix it. I ended up deleting the imported 1099s, saving the file, exiting turbo tax, restarting and re-importing the information in order in order to get rid of the error. After that, problems with foreign taxes went away,
This is a TurboTax problem and you are right they don't have a clue how to fix it. My return was rejected after flying through the TT check with flying colors. The program is suppose to show where the problem is in a rejected return, but it doesn't! It is hard to correct something when you don't know what is wrong. She even suggested I ask the IRS! About what?? No problem indicated and TT didn't provide a rejection code.
I will reluctantly try your solution. Since we are retired our Schwab account is our major source of income, so inputting the info is going to take a lot of time. I've used TurboTax since it was MacInTax, but may look for a new program next year as my return was rejected last year as well. At least then they were able to highlight the issue and it was resolved.
KathrynG3, I followed your two-step process. A small amount from 1099-DIV. Selected foreign tax credit without Form 1116. I receive an error indicating that Form 1116 is needed. I never had to complete Form 1116 before. As a result of this error, I can't submit my return online. What can I do?
It depends. To clarify, how much foreign tax credit are we talking about altogether?
The foreign tax credit amount is small, less than the hurdle requiring Form 1116. That’s what was confusing. I followed the advice of one of the other tax experts in the community, and it worked. The advice was to delete Form 1116 from my return. Once I did that, the error went away and I was able to submit my return online. Thanks for your reply.
not helpful. I am reviewing my return. Error check says that I have a number (which is zero) where there should be no number. I can find no way to remove the zero.
This is not helping. Can I get a phone number to call someone?
To contact one of our tax professionals, please click here: TurboTax contact
Where is this box on what form? You may also write back with more information.
@david3560