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Level 3
posted Feb 19, 2022 12:56:13 PM

Why does TT give me a foreign tax credit of $61 when I said I had no foreign income and paid no foreign taxes?

Another TT user said she also paid no foreign taxes but got a $61 credit.
IRS publication 514 says this credit is for taxes you actually paid or accrued.
Seems like a bug in TT.

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1 Best answer
Expert Alumni
Feb 19, 2022 4:42:04 PM

The foreign tax credit section is TurboTax is not final yet. The estimated date is March 3. You may see incorrect numbers because the section is not complete.

 

For the latest update, check Form 1116 in IRS forms availability table for TurboTax individual (personal) tax products.

4 Replies
Expert Alumni
Feb 19, 2022 1:12:52 PM

If you received Form 1099-DIV, check to see if Box 7 is filled with $61. It is because your investment portfolio had foreign holdings and foreign tax paid on foreign income earned by your investment portfolio. Since you are paying taxes on your dividend income, you can also take a credit for foreign tax paid on your tax return. 

Level 3
Feb 19, 2022 2:37:07 PM

That's a good suggestion, but box 7 is zero on all of my 1099-DIVs.

Expert Alumni
Feb 19, 2022 4:42:04 PM

The foreign tax credit section is TurboTax is not final yet. The estimated date is March 3. You may see incorrect numbers because the section is not complete.

 

For the latest update, check Form 1116 in IRS forms availability table for TurboTax individual (personal) tax products.

Level 3
Feb 19, 2022 9:42:44 PM

So as I suspected, it is a TT bug.

TT has offered a substantial discount if I file by Feb 28, but I can't because of this bug. Sounds like something out of "Dilbert".