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posted Jun 1, 2019 8:57:44 AM

I entered INTEREST and WITHHOLDING TAX on foreign account on Box1 & 6 for 1099-INT.Is this correct?Is withholding tax considered foreign tax paid and eligible for credit?

I have a foreign savings account that earned minimal INTEREST and WITHHOLDING TAX (15% on interest earned).  Since I don't have a 1099-INT for a foreign account, I entered the numbers on box 1 and 6, respectively, on 1099-INT.  I noticed this added a foreign tax credit (and Form 1116) on a dollar-to-dollar basis.  Is this correct?  Is withholding tax considered foreign tax paid and also eligible for credit on both my federal and state return?  I wanted to make sure I don't claim incorrect credits on these withholding taxes. 

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1 Replies
Level 3
Jun 1, 2019 8:57:45 AM

Yes, it is correct.  Box 6 is foreign tax.

You're paying US tax on it right now, because it's being reported in your total income.  Make sure that your foreign tax is in US dollars, though.