How to make sure that all the foreign tax paid are entered into Form 1116?

[Sunbaltax]

Under your instructions item 3 says to click on Foreign Taxes but on the online version there is only Foreign Tax Credit and no Foreign Taxes and when I click I do not get the things you mention. So please update. Also where should I enter the RRIF funds received. Right now I entered along with 1099-R with foreign address. But I am not sure that is the way to proceed. The forms have changed from previous years and I have been spending over 10 hours on this so far and even telephone help only results in waste of time since they also do not seem to know and go fishing endlessly. Please respond asap.

[Golden Bear]

In reading your reply below. One still needs to complete Form 1116? Is this correct or can be avoided? I am referring to specifically taking a foreign tax credit for Canadian CPP, OAS and RRIF income. Thank you. 

[huilam1942]

It is not very straight forwards  in the online Premier version I had been using for many years.  This is because when you enter the RRIF distribution, TurboTax does not ask you for foreign tax paid, like other mutual fund incomes which have foreign income components.  I do not recall how I entered the foreign tax paid for my RRIF at this time.  I kind of recall it was buried in Form 1116, but I cannot be sure though.  Every year I had the some issue and had to take time to figure it out again.  You may have to be careful not entering your RRIF distribution again in Form 1116, otherwise, you will end up paying more taxes.

It would really be very good if TurboTax could make the corrections to treat Canadian RRIF and other Canadian retirements incomes the same as mutual fund incomes with foreign income components and foreign tax paid.

[tbapf6]

I use TurboTax Premier and follow the EasyStep method.  This was not a huge problem in 2019, just pretty opaque, and very awkward to get the numbers entered.  For the 2020 version, it's been just plain broken.  Last night, I discovered (I think) how to do it.  You can't use EasyStep to enter the Canadian withholding tax, because EasyStep only asks you about taxes on dividends, rents/royalties and interest..  First, set up an 1116 form for your RIF income, which can be done in EasyStep; enter all the data that EasyStep requests.  Then, you have to switch to the Forms version of TurboTax 2020: go to Part-II of the 1116.  In column A-p, enter the amount of tax withheld in Can$; in column A-t, enter the amount in U$.  My 1116 then proceeded to do the calculations.  My perception is that if you have entries for columns q/r/s, TurboTax will add these to 't', and give the total in 'u'.

[tbapf6]

... and for the Netherlands income, create an 1116 for the Netherlands, and use the same approach as for the Canadian RRIF.

[ReneeM7122]

Correct, you can use Form 1116 to calculate the foreign tax credit for income in both Canada and the Netherlands, and you have to complete two forms.  They cannot be combined.  Here is a TurboTax article that discusses how to use the credit.

@tbapf6

[Treetops10]

Premier Turbotax CD 2020 does not have these headings as you describe. 

[huilam1942]

Thanks very much.  I do have RRIF holding and every year, the online version of TurboTax Premier seems to change a bit.  I have used the online version for many years, and every year the same situation popped up.  Just cannot seem to be able to enter the RRIF holding tax from Canada.

I know TurboTax keeps a version of our tax return from the preceding year, why it is so complicated for TurboTax to refer to our previous filing.  I wonder a lot of time, if I should stop using the online version and buy a desk top version from Costco and be done with it.  

I tried to call the TurboTax support the "robotic" lady from the support line asked a few questions, referred me to the TurboTax Community for answers,.  She refused to connect me to a live person for support and then hung up on me.  Very frustrating.

[huilam1942]

I have a similar problem with the Online TurboTax Premier version.  I do not know why TurboTax not correcting the problem which is well know to all who have retirement incomes from Canada RRIF and RRSP.

[huilam1942]

110% agreed.  TurboTax should fix this well known issue.