how to you enter multiple countries when entering the foreign tax credit screen

[DaveF1006 · Accepted solution]

If you are applying for foreign tax credits from multiple countries from interest and dividend information, use "various" to report the information into one country. The IRS allows you to use the code "RIC" (Regulated Investment Company) or "Various" for these types of pooled investments because the fund itself has already done the heavy lifting of calculating the tax across dozens of nations.

If you own individual stocks in multiple countries and reported stock sales or other investment sales, then each country needs to be reported individually with it's own separate entry on Form 1116. Let us know if this is the case because there are specific in generating addtional Forms 1116 since the form 1116 will only accommodate three countries.

As I mentioned, if your Foreign Income is strictly interest and dividends, then use "various" as this is perfectly acceptable and encouraged by the IRS.

[debanncohen]

thank you for your reply but this does not answer my question which is specific to the screens/interview for requesting a foreign tax credit. The app correctly loads my 1099 foreign income and taxes paid, in the income section, which is where you use the various as you suggested. It does not load any country specific tax and income information. The screens /dialogue for foreign tax credits under deductions and credit and entering this information country by country for for multiple countries is broken and others have reported it. I suggest you try it yourself and see the problem firsthand.

[ThomasM125]

If your foreign taxes were reported on a 1099 form, when you go through the foreign taxes section you will see a screen that says Where did you receive (type of income) From? On that screen there will be a column entitled Country where you can indicate what countries the income came from. On the next screen you can choose each country and enter the income belonging to it. 

You see this option after you choose the credit option as opposed to the deduction. The next screen says Reporting Foreign Taxes Paid. That screen notifies you that you will be reporting taxes paid on various 1099 and K-1 forms.

[debanncohen]

Thank you for your reply. 

Yes I see the place to list /enter the countries - but the app does not let you complete the entry ( adding the income for each one of them...It does not even let you enter the tax amount paid.  I suggest that you try it and you can see how its broken. Others have reported it's broken as well.

[debanncohen]

Wow. Finally solved the problem with your help thank you!!  I earlier could not find the "various" listing in the income - sources  screen, I was looking for it alphabetically, toward the bottom of the country list; it was easy to miss based on how it was positioned - with "select a country or US possession" . This threw me off.  .Should have had " select "ONE a country or US possession, or RIC or Various" ... Bad drop down list design.