1116 Help

[Steve_tt]

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]

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.

[Steve_tt]

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?

[RobertB4444]

@Steve_tt  Yes, you need to file form 1116.  Go to Deductions and Credits to the Foreign Taxes under Other Taxes Paid.

[Steve_tt]

Thank you for clarifying. If I file a 1116 Do I have to enter the amounts in the 1099 section as well. I did not recv a 1099 from my foreign bank as they deduct the taxes as soon as I get the interest payment posted to my account. They call it a Tax deducted at the source. I just summed the amount using my bank account statements.

Thank You Again!

[DaveF1006]

To clarify, are you asking about a 1099 DIV or 1099 INT?

@Steve_tt

[Steve_tt]

1099-INT, I dont have an EIN Number.

[AamilD]

You can enter your 1099-INT Manually and then it will not ask for an EIN Number. Please follow the steps below:

1. Select Tax Home on the left side menu.
2. Select Income & Expenses on the main screen and then select "Work on other Income"
3. Scroll down, or expand the list and find Interest and Dividends.
4. Expand that section and find Interest on 1099-INT.
5. Click on Start to the right.
6. Answer the first question Yes.
7. Click Continue.
8. Click on Change how I enter my form in the lower right corner.
9. Select Type it in myself.
10. Then you can enter the information manually.

When you follow the steps mentioned above, it will not ask for an EIN Number.

[Steve_tt]

Thank You. I understand that, but my question is, do I have to do it?

[MayaD]

Yes, you need to report all income from all sources (including foreign dividends and interest on your US income tax return.