How do I report foreign interest income that I want to claim FTC on (form 1116)?

[tbudd]

How should I go about reporting passive income (foreign interests) , besides foreign earned salary (that gets categorized as general category income) that I want to claim FTC on (on 1116).  Typically I report such foreign income by manually entering a 1099-INT form on TT, but the FTC guide seems to specifically ask to exclude 1099-INT data as passive income, even though in this case it's sort of made up 1099-INT.

[DaveF1006]

According to the instructions form 1116, Passive income generally includes dividends, interest, royalties, rents, annuities, excess of gains over losses from the sale of property that produces such income or of non-income-producing investment property, and excess of gains over losses from foreign currency or commodities transactions. Capital gains not related to the active conduct of a trade or business are also generally passive income.

@tbudd

[tbudd]

My question was on "how" to report this passive income (as in which TT chain of screens) using TT. Should it be reported through manual entry of interest income letting TT represent the same in a made up 1099-INT behind the scenes?

[DaveF1006 · Accepted solution]

Yes, report this on a mock 1099-INT and report a foreign tax paid in Box 6 of the 1099 INT.  When you claim a foreign tax credit for the interest, the entry will appear asking you the country where the foreign tax was paid and the amount of foreign interest reported in the 1099 INT.  This will then report this as passive category income.

@tbudd.

[DanP0428]

What is the trick to make a mock 1099-INT work in TurboTax so you don't get a Review on it that keeps it from filing until it has an EIN.  Do you have to also make up a mock EIN?

[LoganathanB]

The TurboTax will not ask for EIN if you choose the option I will type it myself.

Enter Bank in the Received from box and enter the amount of interest in Box 1.

• Open your Tax return
• Click on Federal >Wages & Income
• Click on Interest and follow the onscreen instructions.