Why don't i need to file schedule 3 for foreign tax credit or 1116 since I paid foreign taxes

There’s a specific way to enter your Box 7 foreign tax paid for Form 1099-DIV in TurboTax Online.  If you miss it, a tax credit may not appear. 

 

First, go back into the Form 1099-DIV portion of the interview and make sure you entered the Foreign tax paid from Box 7 of Form 1099-DIV, Dividends and Distributions.  The entry box is hidden when the relevant page first appears.

 

Please see the TurboTax Help article Where do I enter my 1099-DIV in TurboTax Online? for entry information.

 

Note that, when you get to the Let's get the info from your 1099-DIV page, you’ll need to select the My form has info in other boxes (this is uncommon) box.  This will generate a Box 7 field for you to enter.

 

It’s also possible that, at some point, you may have inadvertently selected to claim a deduction, rather than a credit. 

 

If the above doesn’t work, then, in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, scroll down and select the dropdown to the right of Deductions & Credits and select Let’s get started, Pick up where you left off, or Review/Edit. 
   • Otherwise, in the left pane, select the dropdown to the right of Federal, then select Deductions & Credits 
2. On the Your tax breaks page, scroll down and select the Show more dropdown to the right of Estimates and Other Taxes Paid
3. Select Start or Revisit to the right of Foreign Tax Credit
4. On the Foreign Tax Credit screen, answer the question Did you pay foreign taxes in 2022 or have credits to use from a prior year? appropriately 
5. Enter all relevant information on subsequent screens

 Please see the TurboTax Help article What does or doesn't qualify for the Foreign Tax Credit? for more information.