Foreign Tax Paid

[tomc17irs]

On my brokerage 1099 statement it states I paid $12 in Foreign Tax Paid on one of the stocks I own, why cant I claim this $12 credit, turbo tax software does nothing for this under that section?  Please Explain, don't want to waste more time on this.

[DaveF1006]

It depends. If you are asking how your foreign is reported, this is how to report your Foreign Tax paid.

1.  Depending on if this is reported in a 1099 DIV or 1099 INT. If an 1099-INT, there is a check box that is labeled My form has more than Box 1 (this is uncommon). Now the boxes are expanded and you can report your foreign tax paid in Box 6.
2. If a 1099-DIV, this check box is labeled, My Form Has More than These Boxes. Once you check this and the box expands, you will report in Box 7.

Let us know if this helps and if this doesn't address your question, please reach out to us!!

[tomc17irs]

What I'm asking is, I can't enter the $12 in TurboTax as a credit under Foreign Tax Paid?

[ErnieS0]

You’ll need to complete Form 1116 to claim a credit for foreign tax paid. 

Here’s how to do it:

1. Type foreign tax credit in Search (magnifying glass) in the upper right corner
2. Select Jump to foreign tax credit
3. Complete the screens to claim either the credit or deduction

For more help: Where do I enter the foreign tax credit (Form 1116) or deduction?

[tomc17irs]

I did all that and the form 1116 is to file claim  of 300 and more, I want a simple credit of $12 and I cant see how to do it, it wont let me.

[ErnieS0]

TurboTax will give you a foreign tax credit of less than $300. However, you still need to complete the foreign tax credit section.

Here's what to do:

1. Type foreign tax credit in Search (magnifying glass) in the upper right corner
2. Select Jump to foreign tax credit
3. On the screen “Foreign Tax Credit,” tap Continue
4. On “Tell Us About Your Foreign Taxes,” select You have no more foreign taxes to enter other than those you have already entered on a 1099-DIV, 109-INT, 1099-OID, or a Schedule K-1, then Continue
5. On “Foreign Taxes,” tap Continue
6. On “Do You Want the Deduction or the Credit?” select Take a Credit
7. On “Reporting Foreign Taxes Paid,” tap Continue
8. On “Where Did You Receive Dividend Income From?” select RIC, then Continue
9. On “Income From Foreign Countries,” select Report Income
10. On “Report Foreign Tax Paid to RIC," select the box next to your payer, then Continue
11. On “Foreign Source Income, enter your Foreign Source Income, then Continue
12. On “Reporting Foreign Taxes Paid,” say No
13. On “No Other Income or Expenses, select Yes
14. Complete the rest of the screens

[tomc17irs]

I missing something here, I simply want to claim $11.20 of Foreign Tax Paid, which is in Box 7 of my 1099. All these responses don't do nothing for me, to me there is a bug in the Turbo Tax software, wasted many hours on trying to take a 11.20 credit, I'm just gonna bypass it, to much of a issue.

[RalphH1]

That sounds like a reasonable thing to do here, and I certainly get what you’re saying! Unfortunately, the tax code is just extremely tricky, and our software has to sort out possibly complicated scenarios even with things that seem like they should be simple (but it’s mostly to avoid possible headaches for you and us later!).

Ernie and Dave’s advice on how to get the credit were exactly right, as the IRS often wants more info than just that number from your 1099. But since it would be a little credit in your favor, @tomc17irs, they definitely have no problem with your simplifying your life by just skipping it!