Form 1116

[juham2013]

Good morning DaveF1006!

I value your suggestion.  My country of residence is the U.S. and has been for over 20 years continuously.  Being a dual-citizen of the U.S. and my country of birth.

The way you described will make it possible for me to report the foreign earned social security to the IRS as income which is what I like and, by law, all income from all sources must be reported to the IRS.  My modest social security was taxed heavily at 17.5% rate too and given that it was a modest sum shouldn't increase my overall taxes here in the U.S. (filing married jointly).  I also have, from the foreign Payor, a document called "Certificate of Income" which clearly states the amount and also the taxes already paid in tax-year 2024.

Cheers,

JJ

[juham2013]

DavidF1006,

When doing it the way you described I am presented with a "weird" question (I ran the Analysis on the return),  See below:

Neither I nor my spouse are students and if there is "No entry", won't there be a problem in future?

JJ

[TaxHacks]

"The problem is really where to properly enter the foreign income. "

If using forms, I believe that you compute the number, and enter that into  "1116 Comp Wks:   line 1c in the appropriate column.

This is working for me down through form 1116 line 8. My problem is getting from line 8 to line 9, which seems like an odd place to stop getting the numbers. Form 1116 with Premier will not propagate line 8 to line 9.

[DaveF1006]

TurboTax uses a master Foreign Tax Credit Worksheet to feed the 1116.

1. Open the Foreign Tax Credit Wks (look for the one named for your specific country or "Various").
2. Scroll down to Part II: Foreign Taxes Paid or Accrued.
3. Ensure the Date Paid/Accrued is entered. TurboTax often refuses to calculate Line 9 if the date is missing, even if the dollar amount is there. Also make sure the checkmark is checked indicating the taxes were paid.
4. Verify that the Type of Income selected on this worksheet matches the category you checked on the top of Form 1116.

@TaxHacks

[TaxHacks]

Thanks. It was worth checking. I had saved a copy of my *.txf2025 file where I had the problem. I opened that, and confirmed that Part II showed 12/31/2025 in the Date column for Country A. At the time I was having the problem I also made sure that the date was a time in 2025.  I also confirmed that box c (Passive category income) was selected.  It would have been nice to understand why I had the problem. I will now return to my later *.txf2025 file.

It was also good to see that somebody had read my post. When entering the post I had somehow clicked something that triggered positing before I had selected I was using Windows. I know a lot of people filter reading.

I hope if somebody else runs into the problem, my solution works for them if another does not.