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cpavlacic
New Member

I am not getting my foreign tax credit this year as in the past years and it doesn't do it. Why isn't my form 1116 being completed?

 
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5 Replies
pk
Level 15
Level 15

I am not getting my foreign tax credit this year as in the past years and it doesn't do it. Why isn't my form 1116 being completed?

what type of foreign income do you? what country is the income from?  

I am not getting my foreign tax credit this year as in the past years and it doesn't do it. Why isn't my form 1116 being completed?

It was all on my 1099 DIV form.  Various countries but all relating to dividends.  
pk
Level 15
Level 15

I am not getting my foreign tax credit this year as in the past years and it doesn't do it. Why isn't my form 1116 being completed?

Under 26.USC.904.(j).2.(B), if your total foreign taxes paid  do not exceed $300 ( $600 for joint filer) in any taxable year, then there is no need to use form 1116 to compute allowable  foreign tax credit -- the limit does not apply i.e. all the foreign  taxes claimed is allowed as credit. So if this your case then  there should be no 1116 computation

I am not getting my foreign tax credit this year as in the past years and it doesn't do it. Why isn't my form 1116 being completed?

Thanks for your help but it was over the limit.  I got in contact with Turbo Tax and it is a software error.  I had to do this in case anyone else is having the same problem

This is a software error and here is the workaround. If you are using the desktop version,  Bring up Form 1040 Wks. and make sure the credit is posted on line 48. If it is then bring up the 1099-DIV Worksheet.  In Box 7, double click on the f1116 icon.Another box will appear. You will see the phrase “Form 1116 (COPY 1)”.  Click on that and it will be highlighted.  Then click on the “LINK” button. That box will disappear and you will see the phrase “COPY 1” inside the f1116 icon.Then recheck Form 1040 Wks. and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.
pk
Level 15
Level 15

I am not getting my foreign tax credit this year as in the past years and it doesn't do it. Why isn't my form 1116 being completed?

thank you for sharing @pavlacic
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