Turbotax online - no way to enter foreign capital gains and foreign tax paid for them

[raghuv]

In the Foreign Taxes section it allows you to take credit for foreign taxes paid for interests and dividends but not for capital gains. Any help for capital gains is highly appreciated.

[LinaJ2020]

Please follow these steps:

Make sure you have entered the capital gain transactions somewhere in the program ( for example 1099-B section) to show you are paying taxes on your Form 1040.  

You will then enter info under Foreign Tax Credit section here: 

In TurboTax online,

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• On screen, "Tell Us About Your Foreign Taxes", do not check the first box. 
• (First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)". 
• Follow prompts
• Choose the Income Type, select "Passive Income"
• On screen, "Country Summary", add a country to continue
• On screen, "Other Gross Income", enter foreign capital gain and the amount.
• Follow prompts
• On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount

@raghuv

IRS allows you to claim a foreign tax credit if you pay taxes to both foreign and US government including capital gain.  This amount will show on line 1 on Schedule 3 and line 20 of Form 1040.

[Taxmatters]

1. After question 7 Reporting Foreign Taxes Paid when we continue 

it asks - First Year You are Eligible? should I say yes if this is the first time I am eligible for probable foreign tax credit? and on next page should I select - elect the simplified method?

2. On foreign tax credit section it asks - Other Deductions Not Definitely Related ..can you give some examples of not definitely related deduction when you earn capital gains and/or interest from India?

3. also - it ask for Reduction in Foreign Taxes - in what situations we can claim reduction in taxes?

4. Finally when I am about to finish foreign tax credit questionnaire - it shows I have Excess Foreign Tax Credit  but it does show how many $ of excess credit I have ...I believe it is because I have entered income as other income and not on 1099 ..so how do I fix this issue?