First time user. My husband passed away in February so I am trying to follow in his footsteps, on his computer using TurboTax as he always did, Married, Filing Jointly. I’ve figured everything out except for our Foreign Taxes Paid. We have three amounts totaling $630, all are Passive Income and all are reported on 1099-DIVs. The Form 1116 is so convoluted I’d like to claim just part of the Foreign Taxes Paid to keep us under the $600 limit and skip the Form 1116. Is that possible? It would cost me more to hire a CPA to fill out a 1116 than if I just skipped the whole $630. If anyone can help with this I would be so grateful. It took me two weeks to figure out the rest but this has me stumped.
Sorry for your loss. I know of no tax law that would prevent you from claiming less in tax credits than you are entitled to. however, was the account that held the stocks that generated the FTC a joint a/c with right of survivorship with you as the co-owner. or were they in his name only. this may mean that the income and ftc earned after he died are to be reported on a trust return, not your joint return.
Thanks HACKITOFF for your response. I spent THREE evenings studying foreign taxes and finally figured out that firstly I must determine what percentage of that investment income (iShares; RIC) in Box 1a is foreign income. Then I had to go to the company or corporation that sells the iShares, search their site for a tax .pdf and open it. My “Brokers Combined Statement” lists cusip numbers so, OF COURSE, the .pdf listed the ticker tape symbol so I had to find that to identify my actual investment. 38 pages down in the .pdf in Column 19, I found the percentage of funds in my iShares that paid foreign tax. Two of my other ”Brokers Combined Statements” very nicely listed out everything I needed for my returns at the end of their statements so perhaps I should switch my other investments to them. 😃