Errors occur when doing foreign tax credit

Forum|Forum|4 years ago
March 9, 2022
2 replies
7 views

When I enter a country (Canada) and go to the "Report Foreign Tax Paid to Canada" page only one of my 3 form 1099-div shows up on the page to select from.

Also if I proceed to the next country, the last country disappears from the list

rogge1722

Level 10

TT can support only one country per 1099-DIV.
Here is a suggested technique to enter the data for foreign tax credit.

There are X distinct countries. Each country will occupy 1 column in form 1116.

The arrangement is to create X fictitious 1099-DIV’s, each to represent one distinct country. The main 1099-DIV will end up serving only U.S. sources.

Preparation:

I suggest getting the data ready on a spreadsheet. To begin with, for reference, record the amount on the 1099’s boxes 1a, 1b and box 7. Also the amount in schedule B, line 6.

On the spreadsheet, dedicate one column for each country.

Let’s assume that column A is for Canada. From the broker’s supplemental info, insert the ordinary dividends in box 1a. If Canada should be on more than one 1099, then enter them separately then add them up. Do the same for all qualified dividends in box 1b and taxes paid in box 7. These amounts must then be subtracted from the actual 1099’s so that the totals remain constant.

In column B, repeat the same format for the country it represents. Continue on with column C, etc. to the end.

The subtractions can be done piecemeal or any way you like, taking care that it is accurate. When you are done, the main 1099’s will display only the U.S. amounts in box 1a, box 1b and in box 7, make sure they are empty.

Now bring up a blank 1099-DIV. For clarity and convenience, name the payer “Canada.” Fill in box 1a, 1b, and box 7 from the spreadsheet data for Canada. Repeat this format for the remaining countries.

You are now ready to enter the foreign tax credit interview.
During the interview, you will come across a screen header “Report Foreign Tax Paid to (Country). Underneath is “select” and “Dividends paid by”. This screen can display only about 6 payers at a time. The remaining payers are on a succeeding screen. Also you may be asked to submit the date paid for each country. Use 12/31/2021.

KREC

Level 5

Same problem. Why can’t TT support having multiple countries from one broker 1099? It’s not like this is a new situation and most filers are going to have more than one country. This is way more complicated than it should be.

DaveF1006

Level 15

If only one form 1099 DIV appears, you will need to go back and add in the other two forms. As far the countries disappearing, you can only make one entry per 1099 DIV selection. If more than one country should be listed on the 1099 DIV you have shown, select various.

You will need to report the 1099 DIV's that are missing in the return. Here is where to enter.