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aroy0911
Returning Member

How do I enter foreign tex credit carryover?

I am getting an error that says: " 1099-Div - Box 6 should have a value".  This is is the section of the 1099, where you choose: a.) deduct foreign taxes on schedule A, b.) double click to link to a copy of form 1116, c.) Form 1116 - select which column - d.) foreign source amount included dividends.  Where do choose between these options in the easy step process .  I can only see where to choose it by opening the 1099-Div form.

For 2017 all my foreign taxes paid is from 1099-Div forms from TD Ameritrade.   I have a significant regular and AMT foreign tax credit carryovers from my wife working abroad in prior years.  I was hoping to use this carryover to offset taxes paid on foreign dividends and preserve the reaming carryovers to use in future years.  How do I enter my information in order to accomplish this?

Also should I use the simplified  Simplified AMT Foreign Tax Credit Limitation election?  As mentioned we had both salary income and employee stock income in prior years from working and living in Sweden in 2016 and Amsterdam in 2011.

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1 Reply

How do I enter foreign tex credit carryover?

You can enter your foreign tax carryover in the foreign tax credit section of TurboTax.  Follow these steps:

  • Click the Search Topics icon at the top of your screen
  • Type Foreign Tax Credit
  • Select Foreign Tax Credit
  • Click Ok
  • Answer the questions when prompted by TurboTax
  • Click Yes to Do you have any foreign tax credit carryovers from 2016 or a prior year?
  • Enter your foreign tax credit carryovers in the appropriate boxes

It is advisable to use the Simplified AMT Foreign Tax Credit Limitation election when your foreign income is from general category income such as wages.  However, if you have carryover credits from multiple categories, do not elect the simplified method.

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