How to file foreign tax paid in TurboTax if I did not get official 1099-DIV form? How to get form 1116?

[holapi]

Hi,

I have a foreign investment account, which provided me with an unofficial 1099-DIV file which was not filed to IRS. I think I should report foreign dividend as if I received any US-based dividend. But how can I report the “foreign tax paid” using TurboTax?

I tried entering them to TurboTax as if I received form 1099-DIV. It seems to show the correct amount for dividends and tax paid, but would not ask me to fill out form 1116. How do I fix this issue so I can get the step-by-step view to help me filling out form 1116?

I’m using TurboTax Deluxe CD version.

Thank you in advance!

Best regards,

Shirley

[KarenJ2]

If you have no more than $300 in foreign tax if you are single or no more than $600 foreign tax if you are married, you do not need to complete Form 1116.

Exemption from the Foreign Tax Credit Limit

You will not be subject to the foreign tax credit limit and will be able to claim the foreign tax credit without using Form 1116 if all of the following requirements are met.

1. Your only foreign source gross income for the tax year is passive income, as defined in Publication 514 under Separate Limit Income.
2. Your qualified foreign taxes for the tax year are not more than $300 ($600 if filing a joint return).
3. All of your gross foreign income and the foreign taxes are reported to you on a payee statement (such as a Form 1099-DIV or 1099-INT).
4. You elect this procedure for the tax year.

IRS Foreign Tax Credit How to Figure the Credit

You should see the amount on Schedule 3 , line 1.

[holapi]

Thank you so much KarenJ2!

Since the 1099 form I received from the foreign broker mentions explicitly that it is unofficial, it is for information only, and that the form is not filed with IRS, would it meet the requirement #3 you mentioned (that is, All of your gross foreign income and the foreign taxes are reported to you on a payee statement (such as a Form 1099-DIV or 1099-INT))?
Thanks again for your help!

[KarenJ2 · Accepted solution]

I would go ahead and report it without the Form 1116.  If the IRS has any questions about the foreign income or foreign tax they would contact you and you would have back up to show them.  I believe TurboTax automatically defaults to reporting the foreign tax without the Form 1116 if the tax is below a certain amount.

[holapi]

Thank you very much for your help, KarenJ2! I really appreciate it.

[vbadrinath]

There is no place to report Foreign Taxes paid in the questionnaire. My foreign income is all in interest and it is less than $300 (married filing jointly). I reported the income in 1099-DIV although I did not receive a 1099-DIV from the bank. Where do I report the foreign taxes to claim credit?

[ElmerMWalshJr]

I received foreign tax credit forms from brokers, but cannot find the form on turbo tax DeLux.

ElmerMWalshJr

[LinaJ2020]

If you have paid taxes on foreign dividend income to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  You should have received a Form1099-DIV from your broker.  To claim this foreign tax credit, you would need to file a IRS form 1116 to claim the credit.

Here are the steps: 

In TurboTax online,

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts

 It will show on line 1 Schedule 3 and line 20 of your Form 1040.