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Level 5
posted Mar 19, 2023 11:24:30 AM

Form 1116 for foreign tax credit - Requesting confirmation

Hi there, I request your confirmation and have 1 question below:

My fidelity supplement only has 1 line:

  • Country: RIC
  • Security: ISHARES TR CORE MSCI TOTAL
  • Nonqualified: 434
  • Qualified: 4355
  • Interest: 0
  • Total foreign income: 4789
  • Foreign tax paid: 748

Please confirm if the following  corresponding Turbo tax entries are correct accordingly:

  • Passive income, Country = RIC

  • Foreign-Source Income: 4789 ?

    (    Shows up as

    Total

    foreign income for this Category in another screen)

  • Foreign qualified dividends and l.t. capital gains: 4335 (correct?)

  • Chose blank /no for everything else including excess foreign tax credit (carry back from 2021, /AMT)
    • (Reference: In 2021: My Nonqualified was 517, Qualified was 2685, Total foreign income =3203, Foreign tax paid= 171.

Shows: Foreign tax credit = $250

 

Error: Smart check shows following error:

Form 1116 (COPY) -- Foreign Tax Credit Comp Wks: Date must be entered

Is it ok to enter 12/31/2022?

 

 

0 3 2045
3 Replies
Level 10
Mar 19, 2023 2:16:37 PM

Everything looks OK on form 1116. The balance of foreign tax paid $750 and foreign tax credit $250 can be carried back to 2021 or carried forward into 2023 taxes. For some mysterious reason IRS doesn't always allow full tax paid to be the tax credit allowed. The date 12/31/2022 is correct.

Level 5
Mar 19, 2023 2:29:44 PM

Thank you so much!

I had filed using the same Turbo Tax premier last year as well, but it did not seem to import the carry forward from last year. So, please confirm if I should do something specific while filing this tax return to carry it forward to next year. Thank you.

 

Level 10
Mar 19, 2023 4:11:33 PM

check the 1116 worksheets in the Forms. It will show if you chose to carryback the unused credit or carry it forward to 2023. You should probably make a note of this so you can enter it manually if turbotax does not do it automatically. This is my first year of having unused foreign tax credit and that is what I am doing.