Form 1116

[ScubaGT63]

@MarilynG 

another message from Georgia: Agree with prior customers, completing 1116 is not an easy TT interview process- i wish it were- it requires an understanding of how 1116 works and its far less user friendly than all the rest of TT.  i spent hours struggling through and had to read the IRS instructions multiple times-- the naming of various countries RIC etc is just one  issue, how to ratably or not ratably allocate expenses (what on earth is that)... takes a degree to understand it in my view  thanks for your thoughts on this

[ores354]

I have $1368.46 in foreign income taxes paid all from dividends on foreign stocks but everything says i don't need to File 1116 but I'm not seeing any tax credit for foreign taxes paid.....I'm confused

[yehjt]

I did use Form 1116 in both 2021 and 2022 and got foreign tax credits (for foreign taxes paid on foreign dividends). 

If you don't use Form 1116, you can claim the foreign taxes paid in the itemized deductions.  But that is not the same as getting all tax credits.

If you need to file AMT, Turbo Tax also does Form 1116 for AMT for you.

[theforeigninvestor]

How do I claim Georgia State Tax Credit for Taxes Paid on investments in a foreign country?

[theforeigninvestor]

How do I claim Georgia State Tax Credit for Taxes Paid on investments in a foreign country?

[JohnW152]

You can't claim these taxes on your state return.

According to the Worksheet for Other State(s) Tax Credit in Georgia's IT-511 Individual Income Tax Booklet:

Georgia allows a credit for tax paid to another state on income taxable to Georgia and the other state. Use these worksheets to compute the other state(s) tax credit for full-year and part-year residents. Do not file these worksheets with your return. Keep them for your records.

Enter the Total Tax Credit on Form 500 Line 18. Include a copy of tax return(s) filed with other state(s). The credit is for state (including Washington DC) and U.S. local income tax only. The tax must have been imposed on net income. No other income taxes such as foreign local, foreign city, foreign province, foreign country, U.S. Possession, etc., qualify for this credit.

[Bolding mine.]

@theforeigninvestor