Claiming Foreign Tax Credit without Form 1116

[Jack FS]

TT, on line version, will not allow me to claim the FTC without filing Form 1116.  I meet all of the requirements for claiming the $600 FTC without the Form 1116 but TT provides no option for entering the $600 on line #1, of Part I of Schedule 3 to Form 1040.  The override does not work for that line.  How is this supposed to be accomplished???

[DaveF1006]

You can't directly enter the amount on Schedule 3. This would need to be reported on a 1099 DIV, 1099 INT, or a K-1 because it'd need to be proven that this is from a legitimate foreign income source.  

If it is income from any other source other than what is mentioned, it may be necessary to complete Form 1116 to claim the credit, especially if it isn't reported elsewhere.

[rjs]

In the IRS Instructions for Form 1040, page 101, the first requirement for claiming the foreign tax credit without Form 1116 is the following.

"All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-3 (or substitute statement)."

If you enter the foreign tax paid on a 1099-INT, 1099-DIV, or Schedule K-1, TurboTax will put it on Schedule 3 line 1. If you paid foreign tax that is not reported on one of those forms, you have to use Form 1116.

Also note that the $600 maximum is for married filing jointly. If you are not filing a joint return the maximum is $300.

[Mike9241]

@Jack FS if entering on 1099-INT or DIV you only enter the amount of the FTC. no linking to the 1116, no reporting of foreign country. also make sure yo do not have force 1116 check I the info section