Foregin Tax paid (on dividend and mutual fund) deduction

[Anonymous]

I have dividend from ADR stocks and mutual funds where foreign Tax was paid. It is show on Line 7 of 1099. Is this deductible and if yes where?

How do Know if TT has entered/Calculated this information? Where either on Tax forms or TT worksheets I can see this information?

I am using Standard Deduction. Are Foreign Taxes paid on Dividends deductible (I am assuming they can only be deducted on Sch A) or can one take Credit for them? If taking Credit then how to use them and which form?

I looked online, Foreign Tax Credit is taken of IRS form 1116. I don't see this from on my TT worksheets?

[Anonymous]

FTC is usually taken as a credit because a credit will reduce your tax liability more than a deduction and you won't even get the deduction unless you itemize (schedule A) on your 1040 (itemize would have to exceed $12,00 for single return double that for joint)

if the FTC is less than $300 (other than married filing joint) or $600 if filing jointly you can opt out of filing the 1116 but on each dividend form with the FTC you must complete box 8 (use various)  

if the FTC exceeds the limit then on each 1099 with a FTC use must link (item 7b) to form 1116 each 1099 must be linked to its own column (A,B,C) and box 7d must be completed (the amount of the foreign dividends). if you have more than3 such 1099's you must use a second 1116 and proceed the same way

[Anonymous]

Thanks I am taking standard deduction. So deduction does Not help me. FTC has to report as Credit to reduce taxes.

My taxes paid are from 2 entities and amount is more than 300. So I have to use from 1116.

One Single from 1116 has 3 Columns (A, B and C). I am assuming each column is for single country or can I combine them If they are from same Country, For Example

Columns A  ( Non Qualified Dividends from Mutual Funds - Non Qualified  - code is RIC

Column B Qualified Dividends from Corporation - Assuming they are from Same Single Country

and I can get by using only One form (column  A and B on From 1116

I am bit confused layout of  Form 1099-Div.

Box 7a  - Foreign Tax paid

Box 7 b - double click to link form 1116 in pop window

Box 7 C -For form 1116 which column A or B or C to choose.  Which one should I click. I checked A? Box 8 Chose RIC (mutual funds). Then went to 1116 work sheet and filled out Both Column A (mutual funds - non qualified and Column B Qualified Div. I can manually enter Country information into form 116 worksheet and it will appear in from 1116.

Do I need to double click Box 7 c Column B?  Thing is if I click on Column B then I have enter different country in Box 8  not sure what happens to information which I entered earlier?

Box 7d-  Foreign source actual $ amount .

[Anonymous]

Thanks HACKITOFF

I have few question regarding form 6251 (AMT)

I got red error message (I think it is due from 1116 as it was NOT there before I choose to credit for foreign Income Tax paid.

Part 2.

A- Is this first year Foreign Tax credit was claimed? NOT sure

B- Elect to use Simplied AMT foreign Tax Credit  Limitation this year -- YES   or NO

Someone else was doing my taxes in Past. I think I remember seeing form 1116 being used in my Tax return. I am NOT sure which year and what box they clicked.

I read online if you click yes then you can't go back and change it. Not sure pros and cons of either YES or NO? Any input please?