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New Member
posted Feb 28, 2021 1:21:47 PM

When running smart check it says I need form 1116: foreign tax credit comp wks: paid/accrued boxes must be entered. What should I do?

Options are method:paid or accrued. Where can I find the info to check the appropriate box?

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2 Replies
New Member
Apr 2, 2022 9:26:43 AM

Does this mean I worked overseas or for a foreign entity?  I didn't do either. I earned foreign income through a managed mutual fund investment.  

Expert Alumni
Apr 4, 2022 7:29:35 PM

If you reported Foreign Tax paid on a 1099-Div entry, you now have to report the amount of Foreign Income associated with that tax.

 

You should have info from your broker on the amount (or %) of your total dividends that was 'foreign dividends'.

 

Under Deductions & Credits, scroll down to 'Estimates and Other Taxes Paid' and Start/Update 'Foreign Taxes'. 

 

On the page 'Tell us about your Foreign Taxes', check the box for 'You have no more foreign taxes to enter than those you already entered on a 1099-Div..'

 

Indicate you want to take the credit, and on the screen 'Where did you receive dividend income from?' choose 'RIC' for the Country in the dropdown menu. 

 

Continue and you will have an entry field for the amount of 'Foreign Source Income'.