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New Member
posted Apr 1, 2025 9:13:38 AM

Foreign taxes paid on dividends only includes one of the 1099-DIVs

Using EasyStep, I entered five 1099-DIVs that include foreign taxes paid, and I put the amount into Box 7 for each of them. When I look at Part II of Form 1116, though, only one of the Box 7 entries is included in the total taxes paid on dividends. What would keep the other four from being included?

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1 Best answer
New Member
Apr 1, 2025 9:40:33 AM

I figured out the problem. I had gotten to the section where I select either deduction or credit for foreign taxes before I had entered all of the 1099-DIVs. The ones I entered after that were not included in the total on Form 1116. I just went through that section again, checked the new 1099-DIVs, and now they show up in the number on Form 1116.

3 Replies
Level 15
Apr 1, 2025 9:27:43 AM

in Tutbotax each 1099-Div with a foreign tax credit must be assigned a different column on the 1116. A maximum of 3-1099-Div with a FTC can be entered on a Form 1116. if more you have to create additional Forms 1116. You also need to enter the foreign source income and the country. For a mutual fund or ETF use RIC for the country. 

 

Expert Alumni
Apr 1, 2025 9:31:55 AM

Typically, when the source for foreign tax is dividends Form 1116 is not required.  Check Schedule 3 page 1 line 1 to see if all of the foreign tax is there.  If not, review your dividend entries to make sure you have entered all the necessary information.  

New Member
Apr 1, 2025 9:40:33 AM

I figured out the problem. I had gotten to the section where I select either deduction or credit for foreign taxes before I had entered all of the 1099-DIVs. The ones I entered after that were not included in the total on Form 1116. I just went through that section again, checked the new 1099-DIVs, and now they show up in the number on Form 1116.