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Level 3
posted Mar 16, 2023 3:46:16 PM

I paid foreign tax. It shows on my 1099 DIV. Turbo is saying I've met the requirements but it says we don't see any foreign tax payments made but it shows on my return.

TT says I don't have to fill out form 1116. I've entered the foreign tax paid but TT is saying it doesn't see it. Help!

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1 Best answer
Level 3
Mar 17, 2023 11:48:48 AM

Just saw this from the IRS: 

 

Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction.

 

My tax liability for 2022 was zero so that's why it's showing as zero on Line 1 Schedule 3. I don't qualify for the credit.

3 Replies
Level 15
Mar 16, 2023 4:43:56 PM

Is the foreign tax in box 7 of the 1099-DIV? Double-check that it is entered correctly in box 7 in TurboTax.


You said the foreign tax "shows on my return." Is it on Schedule 3 line 1? If not, where does it appear on your tax return?

 

What is the exact amount of the foreign tax in box 7 of the 1099-DIV?

What is the exact message from TurboTax - the entire message, word for word?

 

Level 3
Mar 17, 2023 11:43:49 AM

-It is in Box 7 1099 DIV form

-It shows as 0 on Schedule 3 Line 1

-$52.31

-You Can Take the Foreign Tax Credit - You've met the requirements for taking the foreign tax credit without filling out Form 1116, but we don't see any foreign tax payments made (or there is no taxable income to apply the Foreign Tax Credit against).

 

I know the $52.31 is on my 1099 DIV form and that it is populated in TurboTax. But on my final return it's showing 0 on SChedule 3 Line 1. My feeling is my income doesn't qualify me for this since I'm paying no taxes in 2022. Otherwise, I'm not sure why it's not populating.

Level 3
Mar 17, 2023 11:48:48 AM

Just saw this from the IRS: 

 

Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction.

 

My tax liability for 2022 was zero so that's why it's showing as zero on Line 1 Schedule 3. I don't qualify for the credit.