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c3-hottmann
Level 2

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

 
8 Replies
LinaJ2020
Expert Alumni

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

If you have already entered the Form 1099-DIV information under the 1099-DIV section, you will still need to go through the foreign tax credit section to verify if all the answers to the questions are answered correctly. 

 

To do so, here are the steps:

  • Open up your TurboTax account and select Pick up where you left off
  • At the right upper corner, in the search box, type in "foreign tax credit" and Enter
  • Select Jump to foreign tax credit
  • Follow prompts

@c3-hottmann

 

 

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c3-hottmann
Level 2

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

Thank you, LinaJ2020. Your suggestion was an improvement to the situation that prompted my question in that I was able to enter the information that I thought would be needed for TT to determine my foreign tax credit. Instead, after entering information across several screens, when I was done, I was returned to the Your Tax Breaks screen and button next to Foreign Taxes Credit still says Start and next to it Not Started! When I click on Start, after a couple of screens I'm back to the screen that prompted my question: You’ll need to finish adding your foreign tax payments. Something is wrong here.

KarenJ2
Expert Alumni

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

When you entered your 1099-DIV in TurboTax in the dividend section, did you click the box that says "My form has info in more than just these boxes" and then enter your foreign tax paid in Box 7?  Once it is entered there the foreign tax credit section will acknowledge the foreign taxes paid on the dividends.  You still need to work through the screens in the foreign tax credit section until the end.  

 

Let us know if you are still having issues.

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c3-hottmann
Level 2

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

Thank you, KarenJ2, for your reply. Unfortunately, I had already checked the 1099-DIV foreign taxes paid entry before I submitted my question. Nevertheless, I checked it again and it is correct. I then deleted the 1099-DIV and reimported it. Same result. I then deleted the 1099-DIV and entered the information manually. Same result.

Curiously, when I jump to foreign tax credit and work through the screens, TT seems to know that the foreign income for which I reported paying foreign taxes is from the correct financial institution.

What's also puzzling is that the above is in reference to helping my son complete his taxes. I am not claiming him as a dependent. I am also helping my son #2 separately to complete his taxes and he also has foreign taxes paid on a 1099-DIV and he did not have the problem described through these posts. I am claiming son #2 as a dependent. That is the only difference that I can think of.

KarenJ2
Expert Alumni

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

Curious.  When you indicated that you deleted the information and then entered it manually, did you delete Schedule B and the 1099-DIV worksheet from your file and then reenter the information? 

 

You can delete a form in TurboTax Online by following these steps:

1. Sign into your account and select your current return

2. Select Tax Tools on the bottom left and then Tools 

3. Select Delete a Form 

4. Find the form and select delete next to it

 

 

If you have the CD/Download version you would click on Forms at the top of your screen and click on Forms at the top of your screen and click "Delete" below the appropriate form.

 

 

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c3-hottmann
Level 2

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

Thank you, KarenJ2, for your reply. I am using TT Online. I did as you suggested and deleted Schedule B, which deleted both of the 1099-DIVs (only one has foreign tax paid) and both of the 1099-INTs associated thereto. I reimported all of the 1099s, checked that the figures were correct, and obtained the same result. What else can I do?

ThomasM125
Expert Alumni

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

You need to go to the "Foreign Taxes" section under  "Estimates and Other Taxes Paid" where you will be instructed to enter the foreign income associated with your foreign taxes. You need to make sure that you have entered foreign income for each of the foreign tax entries you made from the 1099 forms.

 

If your foreign taxes are less than $300 (single filer) or $600 (married-joint filer), you do not need to report the foreign income. That may be why your son did not have the same problems you are having.

 

 

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c3-hottmann
Level 2

I entered foreign taxes paid on 1099-DIV so why when I'm in Deductions & Credits am I being told I need to finish adding my foreign tax payments?

Thank you, ThomasM125, for your reply. I did as you suggested. The result did not change.

 

This is not surprising given that the Foreign Tax Credit section you pointed me to under the Estimates and Other Taxes Paid heading leads to the same screens as the Foreign Tax Credit section at the top of the page labeled "Got it. Let's get some more info about these additional tax breaks."

 

The latter Foreign Tax Credit section is one of the choices in a blue box labeled "Your tax breaks" on the page. The fact that this section shows up here suggests to me that TT knows I entered a foreign tax paid in the Wages & Income section of the interview. That's what makes it so confounding when TT then points me back at Wages & Income to enter the foreign tax payment I made (and already entered through a 1099-DIV).

 

Here are the titles of the four screens I see when I click on Foreign Tax Credit:

 

"We’ll check if you’re eligible for the Foreign Tax Credit"

I click on Continue

 

"Before we begin, do you have any income left to enter?"

"Yes, I'm finished entering my income" is pre-selected.

I click on Continue

 

"Did you pay foreign taxes in 2019?"

"Yes, I paid foreign taxes this year." is pre-selected.

I click on Continue

 

"You’ll need to finish adding your foreign tax payments" with a subheading of

"You haven’t entered the amount of any foreign tax payments you made."

I click on Continue, which exits back to the "Got it. Let's get some more info about these additional tax breaks." page with the blue box.

 

Regarding your statement about not needing to report the foreign income if the foreign taxes are less than $300, while the latter is true in my son's case, that does not seem to be the problem as the above "You haven't entered the amount of any foreign tax payments you made" statement makes clear.

 

In an act of desperation, I cleared the tax return and started over. The result did not change.

 

I'm not happy about it, but it appears I will have to give up on claiming the foreign tax credit. I have spent far too many hours on what should be a simple matter.

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