Why is Trubotax asking for income type this year I always take foreign tax credit since I check various as it's hard to say which county from 1099-B and was never asked the following, The default came up as General category income I think it might be Passive income as it's part of divided but then it ask for country summary see below what should I enter.
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for each category of income, a separate 1116 must be prepared. you didn't mention the source so we can't tell you the category except that if it is investment income - dividends, interest capital gins, that's the passive category. you can review the 1116 instructions to see what types of income fall into each category.
even within the same category you must separate the FTC, and foreign income by country on which you pad the tax so one column on it could be Canada, gross income 5000 FTC 750.
On the 1099-Div on line 7 it says foreign tax paid 99 and line 8 it says Foreign Country or US Possession Various.
Should I use Passive income and if I do what should I include in the summary. Thanks
If this is from a dividend, it is Passive Income.
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