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speedway121
Level 2

I have a Betterment account with foreign source income reported INSIDE my 1099 DIV, where do I / How do I calculate the foreign tax credit

The only information I have is:
My 1099 DIV (for all income, foreign and USA) has box 1A of $10k
Box 1B (for all income, foreign and USA) of $5K

The supplemental data I have says that
For box 1A, of the $10K, $2K is Foreign Source Income
For box 1B, of the $5K, $1K is foreign source income

How do I calculate the Foreign Tax Credit?
TT is giving me a default "credit' of $98 but didnt ask me anything about how much foreign income was included in the 1099 DIV.
3 Replies
rogge1722
Level 9

I have a Betterment account with foreign source income reported INSIDE my 1099 DIV, where do I / How do I calculate the foreign tax credit

TT by default is using the exemption and thus it is not necessary to fill out a f1116.

speedway121
Level 2

I have a Betterment account with foreign source income reported INSIDE my 1099 DIV, where do I / How do I calculate the foreign tax credit

@rogge1722 I am trying to figure out if I benefit further by filling out form 1116 vs taking the default exemption credit.
taxmeplenty
Level 2

I have a Betterment account with foreign source income reported INSIDE my 1099 DIV, where do I / How do I calculate the foreign tax credit

I am extremely not an expert in this area, but came across this question while trying to understand my Betterment supplemental tax form. You may already know this part, but I believe TurboTax isn't prompting you for more information because you paid under $300 in foreign taxes (your cited figure was $98). That would exclude you from the IRS' guidance on who should file Form 1116.

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