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Level 2
posted Mar 5, 2021 5:22:28 PM

I'm having trouble entering the dividends for the foreign tax credit. I only have passive income from two stocks and a couple of mutual funds?

TT will only let me enter one country and a time and then resets when I try to add the next entry. I tried lumping everything in to one entry and my tax return was rejected. Don't know what to do to sort out the error. Turbo tax is no help!!

0 6 856
6 Replies
Expert Alumni
Mar 5, 2021 6:41:15 PM

Enter your 1099-DIV in the Dividends and Interest Section first.

 

TurboTax carries the amount of Foreign Tax you entered to Form 1116, Foreign Tax Credit, for you.

 

In the Foreign Tax Credit interview, choose 'RIC' as the country from which you received your Dividends.  You will then enter the total amount of your Foreign Dividend Income. 

 

Click this link for more info on What is RIC

 

 

 

 

 

 

Level 2
Mar 6, 2021 9:46:51 AM

Thanks for your reply. As near as I can tell that is exactly what I have been doing (about 10 times now). Turbo tax reviews the return and says everything is in order and ready to file. I went through everything again this morning , refilled my taxes and they were immediately rejected again by the IRS for the same reason. I would love to sort this out and be done with this! Here is the rejection message that I'm getting: /Return/ReturnData/IRS1116/ForeignTaxCreditSource/USTaxWithheldOnDividendAmt - Data in the return is missing or invalid. Please double check your entries.

Level 2
Mar 6, 2021 12:37:49 PM

Good news, I think...my return has now been accepted by the IRS. The problem seemed to revolve around the question of "the date the taxes were paid". This question pops up in the following section concerning the AMT tax. Originally I had entered various for the date, I changed that to the final day of the year. That seemed to satisfy the IRS, whether that is the "correct" answer...

Level 2
Apr 13, 2021 7:24:29 AM

I'm having the same exact rejection reason.

Level 2
Apr 13, 2021 7:25:33 AM

Thanks.  I have the same issue.  Will try to changing the date

Level 2
Apr 13, 2021 10:02:54 AM

Date change did the trick.  Thanks for posting the problem and discovering the solution!