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Why can't I take a Foreign Tax Credit when I paid Foreign Tax as listed on 1099-DIV, Box 7.

When I select the box for Foreign Tax credit, the answer comes bace zero.
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2 Replies
pk
Level 15
Level 15

Why can't I take a Foreign Tax Credit when I paid Foreign Tax as listed on 1099-DIV, Box 7.

If you select that you want the simplified method, TurboTax should allow you to use  safe harbor  of upto $600 foreign tax credit ( for joint filers) without using form 1116---- ( form 1116  would  recognize the foreign taxes  paid  but allowable for the  year would be based on a ratio  of foreign income  to world income and  may be  pretty much reduced).

 

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Why can't I take a Foreign Tax Credit when I paid Foreign Tax as listed on 1099-DIV, Box 7.

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