1116 Help

Forum|Forum|4 years ago
March 18, 2022
1 reply
3 views

Hello,

I have a foreign bank account and some 1099-DIV with foreign taxes paid. I do not have any 1099's for the foreign bank account. Am i required to file 1116? Also, my interests and dividends are all less than $300. If I have to file 1116 since I don't have 1099 for the foreign account, do I enter the amounts as 1099 with out an EIN number and also create a separate 1116?

Thanks!

ThomasM125

Level 15

You aren't required to file form 1116, foreign tax credit, but you may need to file it if you want the credit.

You enter the dividends in the Federal section of TurboTax, in the Income and Expenses section, then Interest and Dividends, then Dividends on 1099-DIV. On the dividend entry form, click on the box that says My form has info in more than just these boxes and you will see where you can enter the foreign taxes in box 7.

If the foreign taxes are less than $300 (single filer) or $600 (joint return) total, you don't need to complete the form 1116 and you will see the foreign tax credit entered on line 1 of schedule 3.

Otherwise, you need to complete the Foreign Taxes section under Estimates and Other Taxes Paid in the Deductions and Credits section of TurboTax, under Estimates and Other Taxes Paid if you want the foreign tax credit.

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Steve_ttAuthor

Level 2

I do have a foreign interest that is not reported on 1099? Form 1116 instructions state I can skip the form only when

All of your gross foreign income and foreign taxes are reported to you on a payee statement such as a Form 1099, dividend or 1099 interest and then you elect this procedure for the tax year

In my scenario, its a foreign bank account that does not do 1099. Can you please clarify?