how to Form 1116 Foreign Tax Credit Comp Wks: Paid/Accrued Boxes must be entered

Hello TurboTax,

My wife bought an investment fund with Charles Schwab. On form 1099-DIV says she paid $44.16 in foreign tax. TurboTax desktop is asking to fill out Form 1116 Foreign Tax Credit Comp Wks: Paid/Accrued Boxes must be entered. I never filled this form out, can you help?

1248

Level 9

Apr 12, 2022 10:10:52 AM

That amount qualifies for the $600 exemption which means it should have appeared on form 1040 line 20 automatically unless you have carryovers. If there are carryovers, then TT will generate a form 1116 and a form 1116 worksheet because in lieu of the exemption, TT will use a calculated foreign tax credit. In Forms Mode, bring up form 1116. If there is an entry on line 10, you have carryovers.

Level 7

Apr 12, 2022 1:57:10 PM

Open your tax return
Goto Income and wages
Goto dividends
Enter the information including the foreign tax paid
TurboTax will create form 1116
Goto forms mode and fill in the details like paid/accrued, country.

Foreign taxes will be paid

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how to Form 1116 Foreign Tax Credit Comp Wks: Paid/Accrued Boxes must be entered