If the amount in box 7 of your 1099-DIV is more than the following amount you will need to enter it under Foreign Tax Credits under Deductions and Credits. If the amount is below the following criteria, you don't need to enter it at all.
- are not Married Filing Joint and have more than $300 of foreign taxes withheld, or,
- are Married Filing Joint and have more than $600 of foreign taxes withheld.
To open up the 1099-DIV to add boxes 2b through Box 11.
Look under Box 1b-Qualified Dividends and Box 2a-Total Capital Gain Distributions. You will need to check the small box (My form has info in more than just these boxes) directly under these boxes. Once you check this box it opens up many more options, including the Box 6, Foreign Tax Paid
To report the Foreign Tax Paid and record the source of foreign income:
1. Go to Deductions and Credits.
2. Select Estimates and Other Taxes paid. From here you will choose Foreign Taxes.
3. The opening page requires you to Continue. The next page is Tell Us About Your Foreign Taxes, you will check the first box that you don't have any other Foreign Tax except those entered on 1099-DIV. Continue.
4. The form to claim Foreign taxes is 1116 which TurboTax will help you complete by Continuing. (Form 1066 is U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.
5. The next page will help you decide if you need to include as Itemized Deduction or take the Credit.