First, you need to be sure you've entered the Foreign Tax you paid in the 1099-DIV interview. To enter this in TurboTax,
- In your
Federal return, choose the tab for Wages & Income, then scroll down
to Dividends on 1099-DIV and click Edit/Add
- On the
page Here's the dividend info we have so far Edit or +Add another broker
or payer if you have not yet entered the 1099-DIV
- On the
page Let's get the details from your 1099-DIV or brokerage statement mark
the check box under Box 1b - Qualified dividends that says My form has
info in more than just these boxes (this is uncommon).
- Enter your
Foreign Tax Paid in Box 7 and Continue to complete the section
Then, while the
software says, "If you have an entry in box 7 of your 1099-DIV, you might
not have to do anything about it," you'll likely have to visit the Foreign Tax Credits section under Deductions and Credits to enter the
information required by the IRS, because there isn't a box for the foreign
income reported on the 1099-DIV in the software. You should be able to
find the income on which the foreign tax was paid in your Form 1099-DIV
details.
- In the Foreign
Tax interview,
on the page Tell Us About Your Foreign Taxes, choose the first
option.
-
Continue through the interview, answering the
questions. Your "Country in which foreign
tax was paid" when asked, should be answered "RIC" if it was
from a Regulated Investment Company or Mutual Fund
-
Continue through the end of the interview. Some
information may be pre-filled. Be certain it is correct. The
default payment date for RIC/mutual funds is 12/31, so do not change that
date. If you review your entries, they will be cleared and you will
have to enter everything again, so I suggest you skip that step unless you
think you made a mistake.
This
should resolve your issue.
