Foreign Tax Credit - Double what it should be

I noticed the Foreign tax credit being inserted on the 1040 is high.

It should be $4 and somehow TT is calculating $8. I have chased through the forms and found the value in Form 1116 line 35 is incorrect. I have been through the forms and I still don't see how it is calculating this incorrectly. If I override the value will I still be able to electronically submit the forms?

488

Level 15

May 18, 2021 11:51:16 AM

if you enter any override not only will you not be able to e-file. Turbotax's accuracy guarantee is void.

you need to review your input - the forms you enter the FTC credit on and page 1 of form 1116. if you entred your FTC thru 1099-div, 1099-int, k-1 FTC section you do not enter it again on form 1116.

by the way, if your total passive income FTC is less than $300 form 1116 is not required. then you do not link the input forms to the 1116

Expert Alumni

May 18, 2021 4:22:04 PM

In addition to Mike9241's advise from above, please double check your entries thru these steps below.

In TurboTax online,

Open up your TurboTax account and select Pick up where you left off
At the right upper corner, in the search box, type in "foreign tax credit" and Enter
Select Jump to foreign tax credit
Follow prompts
On screen, "Tell Us About Your Foreign Taxes", Make sure check the right box
(First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)".
Follow prompts
Choose the Income Type, select "Passive Income"
On screen, "Country Summary", add a country to continue
Follow prompts
On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount

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Foreign Tax Credit - Double what it should be