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New Member
posted Apr 19, 2023 7:00:24 AM

Warning: Foreign Tax credit does not automatically calculate when you import your 1099-DV!

Warning, not a question. This year for the first time I imported my 1099-DIV from my brokerage company instead of entering it manually. After I efiled, I re-checked my return and saw I had not gotten the foreign tax credit even though I generated form 1116! And there was no warning or flag that more info was needed when I previously reviewed with the software. This never happened when I manually entered my 1099s.

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3 Replies
Returning Member
Apr 19, 2023 10:40:52 AM

Sometimes, it is advantageous for the Foreign Tax paid to be used as a deduction.

Have you checked your deductions?

Employee Tax Expert
Apr 19, 2023 12:41:06 PM

The foreign tax credit entered on a Form 1099-Div is allowed automatically if your foreign tax credit is equal to or less than  $300 (single filer) or $600 (married filing joint) and all of your foreign taxes are reported to you on a Form 1099-Int or 1099-Div. Otherwise, you have to answer the questions in TurboTax regarding the foreign tax credit in order for form 1116 to be populated and for you to qualify for the credit. That is one reason your credit may have been denied.

New Member
Apr 19, 2023 1:37:00 PM

Re deduction, I max out on the Sch A taxes deduction ($10,000 ceiling) so yes, the credit is better for me than tbe deduction. Re any failure of mine to check off the right boxes: I followed the step-by-step instructions exactly, just like cattle have to follow the slaughterhouse chute, and did everything I was asked. No flags at review to show anything amiss. So I do think it is a glitch to watch out for if you import your forms and do not input all the info yourself.