I do not have 1099-B form for foreign capital gains. I reported it as such. Turbotax is asking to upload copy of the form. What should I do?

[darshan_shah]

I selected the option - "Short-term did not receive 1099-B form" while reporting these gains.

[ReneeM7122]

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:

• TurboTax Online
• TurboTax CD/Download software

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:

1. Make sure you've entered all your foreign income.
2. From within your return, search for foreign tax credit and select the Jump to link in the search results.
3. Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
4. 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. 

Report of Foreign Bank and Financial Accounts

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. 

Here is an IRS article that explains the comparison between FATCA and FBAR requirements.

[darshan_shah]

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. 

[LinaJ2020]

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

@darshan_shah

[Taxmatters]

I assume you are from India or in India.

Please confirm both 1099-INT and 1099-B or any informational returns don't apply to India correct?

Because neither banks or brokers don't provide such returns to IRS or to their clients.

Further I added Interest and capital gains from India as other reportable income under miscellaneous income category.

But when I see deduction/credit section - it does not show foreign tax credit ..so I assume unless you enter income under interest and investment income turbotax will not calculate foreign tax credit correct?

So how to solve this issue so that I can still file tax return with foreign income(no US income at all) and take tax credit ?

FYI - total foreign income is less than standard deduction so technically not owing anything to IRS but paid tax to India so can I use that tax credit to future years ?

[karlasouza]

Which form to use to report foreign capital gains if 1099-B form is not applicable? 

All answers I read in TT message boards say something like "make sure you have entered the capital gain or foreign income", but where exactly? 

[RobertB4444]

@karlasouza  Enter your trades as though you had received a 1099-B.  The trades will then be entered into schedule D properly.  You will also tell the system that you didn't receive a 1099-B during the interview so that the trades can be classified properly.

[yiwang]

I tell system that i didnt recieve a 1099-B and just input the gain as i calculated from foreign investment account, but when i fill fatca 8939, the webpage prompt that " fill in the gain/loss form" but i cannot find this information on the website. 

[MarilynG]

Check the form Schedule D in your return.  You can view the Line Number where your gain was reported. 

This is the info to enter on the FACTA Form 8938. 

Here's info on How to Enter Form 8938. 

@yiwang

[chriqii]

@RobertB4444  when click add sales under Stock, it didn't give me an option to choose didn't receive a 1099-B. And also asks me to upload 1099-B file after I filled out proceeds and cost basis manually as though I received 1099-B. What should I do?

[DaveF1006]

Enter the information as if you have a 1099 B form. Be sure when the program says let's import your tax information, indicate you will type it your self. You should then be able to enter the information manually without being asked to import form 1099 B.

@chriqii

[bowlingpiccolo]

Hi! I have tried this for 2022 and have clicked quite far through, yet have not seen an option to select "no 1099-B". Has it been removed?

I am trying to enter a capital loss for a foreign mutual fund sale.

[RobertB4444]

No, it's in the interview.  Just enter all the information as though you had received a 1099-B and you should be fine.

-@bowlingpiccolo

[jvembuna]

I entered as if I received 1099-B from India brokerages. However, how do I enter foreign taxes paid on equity capital gains. There's nothing that links equity sale in India to Foreign Tax Credit screen in Turbo Tax. Would appreciate how you dealt with it?

[ErnieS0]

The foreign tax credit is claimed elsewhere in TurboTax.

Here's how to claim a foreign ax credit:

1. Type foreign tax credit in Search (magnifying glass) in the upper right corner
2. Select  Jump to foreign tax credit
3. Complete the screens to claim either the credit or deduction

For more help: Where do I enter the foreign tax credit (Form 1116) or deduction?

@jvembuna