Foreign tax credit

[12weinbb]

Am I required to take the foreign tax credit?  Amount is small.

[GeoffreyG · Accepted solution]

The answer to your question is that it you do not absolutely have to claim a foreign tax credit if you do not want to.  As a taxpayer you have the election, or option, to forego a foreign tax credit claim if you wish.  One valid reason for doing so, for example, would be if the amount of the foreign tax credit is relatively small, and you do not want to purchase (i.e., pay for) a TurboTax software program upgrade just to be able to make the credit claim.  That would be a rational, and understandable, decision.

Thus, if you don't care too much about your (potential) foreign tax credit claim, then you can safely leave the related information (from Form 1099-DIV for example) off of your tax return.  In other words, neither the IRS nor anyone else is going to make or "force" you to take a valid tax credit (or alternatively a deduction) that you do not wish to.

That said, here are links to (2) TurboTax webpages that discuss foreign tax credits, simply to provide you with more information by which to reach a decision:

https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/Filing-IRS-Form-1116-to-Claim-the-Fo...

https://ttlc.intuit.com/questions/1901623-where-do-i-enter-the-foreign-tax-credit-form-1116-or-deduc...

Thank you for asking this question.