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How do you enter foreign tax credit?

I have 4 separate countries in which I paid foreign tax within my 1099-DIV and I can't figure out how to enter this detail within TT.  I have the desktop version and these directions don't seem to be working for me.  

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-foreign-t...

Any help would be appreciated.
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9 Replies
ThomasM125
Employee Tax Expert

How do you enter foreign tax credit?

First, you enter the Form 1099-DIV that should report foreign taxes paid, in box 7. If you are single and your foreign taxes on dividends and interest is under $300 ($600 if married filing joint) this is all you need to do, as you will get the foreign tax credit automatically. If it is over that amount you need to go to the Estimates and Other Taxes paid section in  the Deductions and Credits area of TurboTax to enter your foreign income.

 

 

Choose the Foreign Taxes option under Estimates and Other Taxes Paid:

 

If your only foreign taxes were reported on your 1099-DIV or 1099-INT or similar statements, choose that option on the screen that says "Tell us About Your Foreign Taxes:

 

Indicate that you need to complete Form 1116 when asked. It's usually better to take the foreign "Credit" option over the "Deduction." Choose the countries you paid the taxes to:

 

 

Then report the income by country:

 

 

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How do you enter foreign tax credit?

Thank you @ThomasM125  but I wonder if the screenshots you had were from the online version.  The desktop version that I have doesn't have those same options.  Any thoughts?

ThomasM125
Employee Tax Expert

How do you enter foreign tax credit?

The screenshots were from the desktop version of TurboTax using the Deluxe product, what version of TurboTax are you using?

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How do you enter foreign tax credit?

The problem I see is that I don't get that screen that says "Tell us about your foreign tax".  

So my first screen is this when I go under the section for Estimated Taxes:Screenshot 2024-03-07 at 8.42.53 AM.pngScreenshot 2024-03-07 at 8.43.21 AM.png

I choose Continue from above and receive this screen to which I choose "Take a credit"

Screenshot 2024-03-07 at 8.43.46 AM.png

No choice but to choose Continue:

Screenshot 2024-03-07 at 8.43.59 AM.png

This is where the fun starts.  SO, I have "Various" and 4 other countries which I paid $860 of foreign taxes.  Each time I enter in a country in the screen below and then choose Continue:Screenshot 2024-03-07 at 8.48.26 AM.png

This now shows me each of the countries that I entered above and my thought would have been to simply choose each country and add the applicable foreign taxes paid but since "Various" is highlighted, I then choose "Report Income"

Screenshot 2024-03-07 at 8.50.06 AM.png

Its on my Morgan Stanley statement so I assume this should be checked and move forwardScreenshot 2024-03-07 at 8.52.45 AM.png

My assumption here is of all 1099-DIV, how much was received in dividends from foreign countries (not the portion related to taxes).  Then choose continue:

Screenshot 2024-03-07 at 8.53.35 AM.png

At this point, if I choose "Yes", it brings me back to the screen with the countries and the only country listed is "Various" and I have to start over again.  It does not allow me to enter in the country and its applicable foreign taxes paid.

Screenshot 2024-03-07 at 8.55.44 AM.png

 

So, I will hit no now to which it begins talking about AMT which I know nothing about so I will say No

Screenshot 2024-03-07 at 8.59.30 AM.png

My assumption here is YES but not entirely sure

Screenshot 2024-03-07 at 9.01.11 AM.png

 

This seems correct:

Screenshot 2024-03-07 at 9.02.19 AM.png

 

I have no idea where this is coming from:
Screenshot 2024-03-07 at 9.03.07 AM.png

 

I assume that the answer is no:

Screenshot 2024-03-07 at 9.03.56 AM.png

 

I leave this blank as is because I am unsure:

Screenshot 2024-03-07 at 9.04.21 AM.png

 

Similar screen to which I say no:

Screenshot 2024-03-07 at 9.05.28 AM.png

 

I think the answer is no but I truly don't know:Screenshot 2024-03-07 at 9.05.55 AM.png

 

I finally get to this section which matches box 7 of my 1099-DIV

Screenshot 2024-03-07 at 9.06.47 AM.png

 

The process in which I got here I am not sure is accurate but not sure of another way.  Also, I may have an issue when I run a check at the end of the process but if anything here looks odd to you or if I did something wrong, I would really appreciate your input.  Thank you!

DaveF1006
Employee Tax Expert

How do you enter foreign tax credit?

Yes, all the screens follows a logical pattern and base on what I see, it appears you have reported this correctly.

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How do you enter foreign tax credit?

Thanks DaveF1006.  However, now when I run the smart check, I receive the following error which I'm stumped on.  Any thoughts?

 

Screenshot 2024-03-07 at 12.50.07 PM.png

DaveF1006
Employee Tax Expert

How do you enter foreign tax credit?

Yes, if it will allow you to make to entry, record the 4760 amount in this box.

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How do you enter foreign tax credit?

Thanks DaveF but I don't even know what that number represents?

 

 

DaveF1006
Employee Tax Expert

How do you enter foreign tax credit?

That is an amount taken from the 1099 DIV worksheets that are linked to the country you are working on in the Foreign Tax Credit section.

 

@Caballo 

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