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Form 1116/Foreign Tax Credit

I received 1099 Div. from two different brokerages reporting foreign dividends and foreign taxes paid.  One brokerage reported foreign dividends and foreign taxes paid from mutual funds only (I entered as "RIC"), the other brokerage reported foreign dividends and foreign taxes paid on two different dates from two "sources", "Various" (mutual fund) and from a specific country (relative to a specific stock).  After completing the return and running the review process, there were no errors remaining to be fixed and I was cleared to E-file.  However, the return was rejected with the following message from TurboTax: "ReturnData/IRS1116/ForeignTaxCredit/USTaxWithheldOnDividendAmt-Data in the return is missing or invalid. Please double check your entries." 

 

I attempted to fix the indicated problems following the guidance best I could, navigating back and forth between forms and questionnaire modes, and when there again were no errors remaining to be fixed, I resubmitted the E-file.  It was again rejected for the same reasons.   I'm thinking there may be some nuance(s) that I've missed in entering the foreign dividend and tax information, but prefer not to continue experimenting.

 

I need assistance from someone with successful experience specific to fixing this case so I can complete the process one last time - successfully!

 

Thank you much,

 

RBG

[phone number removed]

 

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2 Replies
LinaJ2020
Expert Alumni

Form 1116/Foreign Tax Credit

The issue has been submitted and is currently under investigation.  If you would like to receive an update for the progress, click on the following link to get notified:

 

Form 1116 reject error

 

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on Form 1116 along with your US tax return.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  

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Form 1116/Foreign Tax Credit

is the total under $300? if so, then you can skip the 1116 by just entering the FTC on each 1099-div and use "various" for the country. do not link to 1116, if it's over or you have FTC carryover form 2019 you must use form 1116

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