1099-B isn't applicable to foreign capital gains, so you'll want to remove it from your return. Here are links that explain how to delete forms:
You may be eligible for the Foreign Tax Credit.
You'll can report foreign capital gains and claim the Foreign Tax Credit on Form 1116.
Here is an IRS link about Form 1116.
Here's how to get to Form 1116 in TurboTax:
- Make sure you've entered all your foreign income.
- From within your return, search for foreign tax credit and select the Jump to link in the search results.
- Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
- Follow the instructions to get the credit or deduction.
There's a deduction available as well as well as a credit but in most cases, taking the credit works out better. We'll help you decide which one's best for you when you go through this section.
If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.
You may also be required to file two special forms with your 2020 tax return:
FBAR (FinCEN Form 114)
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. The name of the form to file If you have any questions or require technical assistance using the BSA E-Filing system, you may call them at 866-270-0733; or if calling from outside the United States, 313-234-6146.
Foreign Accounts Tax Compliance Act (FATCA)
Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. The IRS receives information about foreign assets on Form 8938 on your federal tax return.
You must file the FBAR electronically through the Financial Crimes Enforcement Network’s BSA E-Filing System. You don’t file the FBAR with your federal tax return.
Thank you for your response. I followed the instructions and try to delete the two 1099-B forms related to Capital gains but TT is not deleting those even though the message says forms are deleted. There are total 3 forms related to this - one says 1099-B Worksheet, second one says 1099-B Worksheet -- Capital gn and third one is same as second one. Second and third seem to be related to my entries of ST and LT gains I recorded.
So, I went ahead and deleted the first 1099-B Worksheet form as well but that deleted all my entries so that that's not good.
Any recommendations about this. I also spoke with TT expert over the call but she was not able to help out.
I am kind of stuck now.
Have you tried this way to remove the forms?
To delete the Form 1099Bs in the TurboTax online version:
1. Sign into your account, select Pick up where you left off
2. Select Tax Tools, click on the drop down arrow
3. Select Tools
4. Under Other helpful links, choose Delete a form
5. Select Delete next to the Form 1099-Bs and Continue with My Return
When you receive a Form 1099-B, it generates capital gains taxes. Generally, when you sell something for more than it cost you to acquire it, the profit is a capital gain, and it may be taxable. On the other hand, if you sell something for less than you paid for it, you may have a capital loss, which you might be able to use to reduce your taxable capital gains or other income. Also note that:
- You pay capital gains taxes with your income tax return, using Schedule D.
- The data from Form 1099-B helps you fill out Schedule D and Form 8949 if needed.
For more information, click here: 1099-B
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