Looking for Specific Field to Specify Canadian Taxes Paid on Dividend Income

[pcmoan]

Hello -

My question pertains to the application of a foreign tax credit to passive income.  Following are details:

1. I live in Canada, but traded with a U.S.-based company when living in the States.
2. I have a 1099-DIV is from the U.S. company. 
3. For sake of discussion, assume 
   1. Box 1b (ordinary dividends) is $150
   2. Box 7 (foreign tax paid) is $0
   3. I paid $25 USD to Canadian Revenue Authority on the $150 dividend
   4. TurboTax says I owe $20 USD.
4. What specific page in TurboTax (and in what field) do  I enter the fact that I've already paid $25 USD to Canada - thereby offsetting the $20 TurboTax says I owe?   I have stepped through each every page in TurboTax and experimented with every field and none reduce the tax.   I assume that I do not enter $25 in Box 7 (foreign taxes paid) because that amount must match what appears on my 1099-DIV,  but I'd expect that TurboTax to provide a similar field. 

Thanks in advance for any help.

Patrick 

[JulieS]

No, you shouldn't enter the $25 on the 1099-DIV since it was not filed that way.

Since the figure is not on your 1099-DIV, you will have to make an entry directly in the foreign tax credit section. 

1. Select Federal on the left, then Deductions and Credits toward the upper center of the screen.
2. Scroll down to Estimates and Other Taxes Paid, expand the section.
3. Find Foreign Tax Credit, and click Start to the right.
4. Click Continue on the first screen.
5. On the screen, We just need to check if you have any uncommon situations, select I have foreign tax credit carryover that I want to use.
6. Click Continue, until you get to, Do You Want the Deduction or the Credit? select Take a credit.
7. When you get to, No Other Income or Expenses, select No.
8. When you get to, Choose the Income Type, select Passive.
9. On Country Summary, click Add a Country (below the gray bar).
10. Click Continue until you get to, Foreign Taxes Paid - Canada. 
11. Complete this screen with your foreign tax information. 
12. Continue until you get back to the country summary. 

[pcmoan]

Thank you JulieS for your response to my question in March.  I did follow the instructions provided, but the Desktop version of TT was taking me in a slightly different direction.  I did get my tax down to zero and was able to file so thanks for the information provided.