1116 issue Foreign tax credit multiple credits across 2 1099-DIV

[LCircuit]

Got DIV with foreign tax paid from multiple countries across 2 1099-DIVs form different brokers. Turbo tax shows both 1099-DIV (broker1, broker 2)  entries first time, and after allocating the foreign income for one broker for one country, next time for next country it stops showing one brokers 1099-DIV.

So I am stuck since the country for which foreign tax credit needs to be claimed, the associated 1099-DIV is not showing up. (also allocation is partial so there is definitely more balance left to allocate for remaining countries).

Not sure how to proceed from here.

Using software install on laptop.

[LinaJ2020]

TurboTax only allows you to select one country per payer, unfortunately.  You might want to sum up the number and put it under one country.  Here is the discussion, click here:  Multiple countries

We are aware of the issue and have submitted it for further investigation.  

Here are the steps: 

You will first need to enter 1099-DIV into the program.  

• Sign in to your account, select Pick up where you left off
• At the right upper corner, in the search box, type in 1099div and Enter 
• Select Jump to 1099div
• Follow prompts

Then, you will enter info under "Foreign Tax Credit" section.  Follow here: 

• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• On screen, "Tell Us About Your Foreign Taxes", check the first box ( If you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)  and others that apply
• Follow prompts
• Choose the Income Type, select "Passive Income"
• On screen, "Country Summary", add a country to continue
• On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit. 

[investng engineer]

@LinaJ2020  Out of curiosity, does this issue also apply to TurboTax download?

[modyssic]

@LinaJ2020 

"We are aware of the issue and have submitted it for further investigation. "

One year later and I guess the investigation lead to nowhere, it's still the same issue.

It's quite frustrating that Turbotax can't deal with such a basic issue - it must affect quite a significant number of customers using Turbotax premier, since owning multiple dividend-paying foreign stocks in a portfolio of one broker is really not such an exotic use case. 

[LCircuit]

@modyssic Think we can use Various instead of filing 1116 form since its foreign tax credit is less than 300 (600 MFJ) income. Seems 1116 is required only if its above this limit. Would have been good if brokers themselves indicated various when tax credit is below this threshold. (As well as, always good if turbotax resolved this issue even if broker doesn't indicate various)

[DaveF1006]

Keep in mind also, a Form 1116 is also required if you have a Foreign Tax Carryover this year and you wish to carryover the unused portion of the credit into future years. This is true for any amount of foreign tax credit that can't be applied in the current year.

@LCircuit

[LCircuit]

Thanks @DaveF1006  for the info, 

Am guessing most of people with low amounts may not carry over.

Wondering on reasons when it gets carried over. Not sure if people carry over due to large amount that can't be claimed in one year OR low income in a year and delaying it to next year might benefit in some way. Guessing expats might have more FTC to claim.

[Vanessa A]

It's not really a choice of when to use it, it's whether or not you are able to use it.  If you have a FTC that is more than you are able to use in a given year, then you can choose to either carry it back a year or forward for 10.