Form 1116

Forum|Forum|1 year ago
March 6, 2025
19 replies
139 views

Hi,

Is there a video that specifically provides a view of the interview process to fill out Form 1116 using TurboTax? There are many, but they are for mailing in paper returns, not using software such as TT.

I tried to manually fill in form 1116 this morning by going to the "Forms" view, but it really doesn't seem very straightforward. All other data (W2 income, INT,DIV, and capital gains) has been plugged into the Desktop version of TT Home & Business already. Filing Married Jointly.

Can I assume that I do NOT need modify or fill in 1040 Form and just focus on Form 1116 at this stage and TT takes care of the rest?

Cheers!

TurboTax Home & Biz Windows

LindaS5247

Alumni - Intuit

Yes, you can be confident that TurboTax will ask you straightforward questions about your foreign income, determine how much of it is deductible (or available as a credit), and properly fill in all the right forms for you.

We don't have a TurboTax generated video for filling out Form 1116, but there are sites that share videos for users of TurboTax that could be helpful.

If you are using TurboTax Live, you can easily connect with a tax expert: You can do this by selecting Live help button. Select Connect with live help at the top of the chat window. Enter your tax question or tax topic area and select Continue.

Click here for "Claiming the Foreign Tax Credit with Form 1116"

Click here for "Where do I enter the foreign tax credit (Form 1116) or deduction?"

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juham2013Author

Level 5

With regard to filling out Form 1116,

1. Enter all your foreign income in the Wages & Income section if you haven't already

The above made me hit a brick-wall. Entering foreign income and then going into 1116 actually increased my tax liability here in the U.S. and it clearly needs to be opposite, given the significant taxes I paid.

The problem is really where to properly enter the foreign income. I have spoken with 3 TT Tax Advisors already.

juham2013Author

Level 5

Hi ThomasM125!

I appreciate your response.

By "If your only foreign taxes are social security taxes that don't qualify for a foreign tax credit...." are you saying that those Taxes do NOT qualify for FTC?

I know that based on the Bi-lateral Tax Treaty between my country of birth and the U.S., the only taxing authority on that social security income from that foreign country is that government.

Where it says "Foreign Earned Wages" doesn't seem right as I did not earn any foreign wages but passive income in the form of social security payments.

I also looked at Form 8833 (not supported by TT). "Treaty-Based Return Position Disclosure"

https://www.irs.gov/pub/irs-pdf/f8833.pdf

Positions (Page 3) for which reporting is waived include, but are not limited to, the
following. See Regulations section 301.6114-1(c) for other waivers from
reporting.
• That a treaty reduces or modifies the
taxation of income derived by an
individual from dependent personal
services, pensions, annuities, social
security, and other public pensions, as
well as income derived by artists,
athletes, students, trainees, or teachers;
• That a Social Security Totalization
Agreement or Diplomatic or Consular
Agreement reduces or modifies the
income of a taxpayer;
..........

The above would apply in my case and would seem to suggest what you are saying would work.

Cheers,

When I was talking to a TT Tax expert on the phone this morning she suggested I try the "Foreign Earned Income and Exclusion: section. Result was that my Federal Taxes went up dramatically.

The 2nd screen after choosing that option produced the one below. None of those boxes appear to apply in my case, getting social security benefits.