turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Why did turbo tax ask me about foreign tax credit? Was it reacting to my 1099-B/DIV?

Turbo tax just asked me about foreign tax credit out of no where, I certainly didn't select it as an option. The only reason I can think of why it would is the 1099-B/DIV for Acorns, which in box 7 shows an amount of foreign tax paid. But I haven't taken any money out of my acorns account so it shouldn't count as income which means I shouldn't have to report it, right?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MinhT1
Expert Alumni

Why did turbo tax ask me about foreign tax credit? Was it reacting to my 1099-B/DIV?

The dividend income reported on form 1099-DIV has to be reported on your tax return, even if you haven't withdrawn the money out of your Acorns account.

 

If a foreign tax credit is reported in box 7, enter it in the entry screen in TurboTax. You don't have to fill out Form 1116 for the foreign tax credit.

 

In TurboTax Online, you can enter your form 1099-DIV by following these steps:

 

  1. Open your tax return
  2. Click on Federal in the left-hand column, then on Wages & Income
  3. Locate the section Investments and Savings and click on the arrow on the right
  4. Click Start next to Dividends on 1099-DIV.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question