Credit on foreign tax paid: Turbotax does not allow one to list multiple countries and itemize the taxes paid in each one.

[nikesyrena]

The software takes in all of the data from the 1099 Div.  Part of that data is how much was paid in foreign taxes and how much the foreign dividends were.  It also asks for a country code.  So, you don't have to back out the foreign dividends from domestic dividends, since the software does that.  The country segregation is the issue.  By the way, if you have that many foreign dividends you might wan to consider  hiring a CPA to do your tax return since you likely have a very complicated return. 

[Troubletos]

I just used "various" for countries and consolidated total foreign dividends and foreign taxes paid.  I also selected "credit" versus deduction.   Just completed the taxes and TurboTax used form 1116 (foreign tax credit) so all is good. 

[Troubletos]

There were taxes paid per country.  I just don't see how that alters anything if it is all lumped together.  It does not affect your taxes you owe or don't owe.  As I mentioned I used "various" and lumped it together.  Turbo tax completed Form 1116 and it is all on one line.  I doubt the IRS will flag it because it does not change what I owe them as the total credit does not change.    You get the full credit what you paid regardless which countries you paid it to.  There are a couple of exceptions such as Cuba etc.  

[Troubletos]

I would just go with "various" and lump it together.  The final credit will be the same whether you break out each country or you lump it together.  I doubt the IRS will flag it because it does not change the foreign tax credit you will get.  I might be wrong but they will only flag something if taxes owed changed.  

[Troubletos]

Yes use "various".  What is the worst possible scenario?  You get an IRS letter requesting you specify exactly what countries they are.  You write back that TT had a software issue and send a letter back breaking the countries out or simply modify Form1116.  At this point what else can you do?    I don't think you can modify the form by overriding/adding anything as TT may reject your E-filing  your return.    Or you can just use "various" have TT complete the form, then you can do your own modified form that specifies the countries.  HOWEVER you will then have to file manually. 

[AbrahamT]

How about trying this for a solution 

Here's what you do

First things, first

Enter the dividend income under Wages and Income like this,

then continue, continue till you get till this screen

then type in "foreign tax credit" in the magnifying glass in the upper right hand size

go through the screens, when you get to the one that asks Do you want to take the Deduction or Credit, say the Credit

then continue , continue till it takes you to the screen which asks you

you will hit no

then next screen,  hit the first option  First year you are eligible, Select yes

then Elect Simplified calculation

then the next screen No Other Income or Expenses, hit no

then Completing form 1116, hit Continue

then again Continue, continue till you get to this screen

choose general category income you'll get to this screen

then hit edit

enter the description and the amount of the specific foreign country you want to include as part of that total various countries you initially entered on that 1099DIV form

then continue, continue till you get to the screen foreign taxes paid, once again you can take an apportionate of the total foreign taxes entered earlier on that 1099 DIV

Then you'll hit continue till you finally get to this screen

here's where you will enter the next country and so on.

Enjoy!

[LCircuit]

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@Troubletos wrote:

Yes use "various".  What is the worst possible scenario?  You get an IRS letter requesting you specify exactly what countries they are.  You write back that TT had a software issue and send a letter back breaking the countries out or simply modify Form1116.  At this point what else can you do?    I don't think you can modify the form by overriding/adding anything as TT may reject your E-filing  your return.    Or you can just use "various" have TT complete the form, then you can do your own modified form that specifies the countries.  HOWEVER you will then have to file manually. 

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It's further confusing when somewhere in TT it indicates <$300 (Single), <$600 (MFJT) in foreign taxes,  1116 may not be needed.

Think even after splitting the div across countries/using various, my 1116 (going through worksheets instead of easyform) lists 99% empty and only lists a country for which only 1099-INT interest was received and foreign taxes were withheld.

So seems any dividend related foreign taxes if under a limit, is not generating 1116? If that's the case TT should be move explicit and not even take us through the flow of attributing each country to its dividend. 

[LCircuit]

Seems there is way to not go through the country based allocation interview & not file form 1116

 1. 

2. This is the screen which decides when to file form 1116, not selecting any results in country based allocation interview. Specifically keeping 2nd checkbox blank or checking none of these apply results in form1116 (some like me might keep 2nd checkbox blank in case their were carryovers that TT might have kept from prior year filing, if one is sure they don't need to take that then checking it simplifies everything)

3. 

4. Take a credit (depending on your situation)

5. confirmation that the election to take credit without form 1116 is for this year

(Above screenshots from installed TT and not from online version)

[williasp]

It's a shame that TT has not figured out a workable solution to this problem, which now extends into this year.  I've spent countless hours every year trying to figure out the right way to do what should be a simple, straightforward process.  I only have two countries to enter.  Easy peasy, right?  No, TT software simply won't let you do it.  So, I resort to using "various", but I don't feel comfortable with that.  If TT can't solve this problem, then they should give clear and distinct instructions during the step-by-step process detailing a correct (or suitable) workaround.  In other words, specify if you have multiple countries reported on one 1099DIV, then use either "various" or "RIC" for your entry.  That would at least provide some comfort for those of us who are simply trying to do the right thing.

[shelleysimon]

I’m so glad you asked that question. I tried many times to put in multiple countries and I got the same problem. If I find a solution I’ll let you know

[Periwinkle65]

     I am not a tax expert so can only report what I've done previous years with no problems e-filing. I used one column to include all "various," a second specifying a single country , and a third labeled RIC to report dividends and interest from mutual funds. 

    I hope this helps. ..... It seemed logical and straightforward far less complex than other solutions for inputting the information. You might to check other advice as well. 

[MarilynG1]

Yes, if you are reporting Foreign Tax Paid on a 1099-DIV or 1099-INT, choose 'RIC' as the country (Regulated Investment Company), and enter the total amount of Foreign Tax and the total amount of Foreign Income on each form you receive. 

It's not necessary to enter each individual country's income/tax paid on this passive category income on the same form. 

Only if you earned income or had business or rental activity in a foreign country would you need to do this.

Here's more info on Claiming the Foreign Tax Credit.

@shelleysimon 

[mironov]

Same experience as yours. Infuriating! 

[DaveF1006]

When you work on your foreign tax credit section, when you arrive at the country summary section, you may select various and this will allow you to summarize each amounts paid to the countries rather than listing each individual country.

[cjn2]

@MarilynG1,

Are you saying that using RIC is the proper entry method when the country-specific dividends and taxes are from individual stock holdings, not mutual funds?