Empty Form 1116 for Foreign tax credits.

[Dfaz]

Hi.

I've finished my Taxes for 2020, as an Expat living permanently in Germany. However, while the system called up Foreign Tax Credits and asked for  which County I paid the taxes, the Form 1116, however the software did not ask me for the sum I paid in German Taxes, but did however bring up my carryovers from 2016 up to 2019, which was correct.  I wondered however why I wasn't asked for the tax sum paid for General category income.

Due to this, the later  printout or view of my return,  the results  was an empty 2 pages of the Form 1116, but the  printout for the carryovers 2016-2019 Form was correctly printed, incluuding the Statement Form. correctly.  

I haven't completed the "File" so that I could go back and start over, or jump back to deductions. 

What went wrong here?

[ErnieS0 · Accepted solution]

TurboTax should ask you to enter the category of income along with the amount.

Go back to the Foreign Tax Credit section.

• Type foreign tax credit in Search in the upper right
• Select Jump to foreign tax credit
• After a few screens, you will have to option to take the Credit.
• Keep going until you see No Other Income or Expenses. Say NO.
• Skip Completing Forms 1116 and Foreign Tax Credit Worksheet
• You will see Choose the Income Type
• Select the type of income
• Add Germany in Country Summary (if it's not there already). Edit if it is.
• You will see Other Gross Income - Germany. Add a description and amount.

[Dfaz]

Hello,

should I select Foreign  Foreign branch category income or General category income?

[Dfaz]

Dear ErnieSO.

Now the Form 1116 has been printed, however after entering the sum for Germany (Tax= $2,819.) the sum in 1a Gross income..... holds the sum for taxes I entered  now in Turbotax??  This confuses me  a bit.   

Up till this year,  I had always calculated my German Social Security in $, this year the rate is 0,8150, and added  my American Social Security benifits to this figure.  In my case: for 2020;

 German Social Security = EURO 22,412.  ./.  0,8150 = $27,499

+ my US SS from SSA-1099 = $3,288. This gives me a total of  $30,787. benefits, both German and American.

This I learned from Allure Accounting in Florida and then Turbotax in 2019 which then worked a bit different as 2020. 

It looks as though I've made another mistake somewhere.  Would it be possible to call over the 0800 number?

[ErnieS0]

Form 1116 line 1a gross income should be $27,499, with the tax paid ($2,819) in Part II. Your German retirement would be entered twice—once in the income section and a second time in the foreign tax credit section. You should have seen a screen: Other Gross Income - Germany.

You can call the toll free number to speak with one of our Tax Experts. See: What is the TurboTax phone number?

[Dfaz]

Hello,

Unfortuneately, as I hadn't received an answer, I changed my data and entered on Form 1116, Line 1a  the amount calculated during the income section and via Worksheet for Social Security benefits of 1. = $3.288 reported on my Form SSA-1099 plus 2. = $27,499.  The sum of both is = $30,787. ~  total Social Security benefits,  for both US and German Social Security benefits.  The calculated result is for 2020 $13.085, which is the taxable amount placed on line 6b of the Form 1040-SR .  I have already sent my return of to AUSTIN, TX.. Didn't relealize that an answer would reach me.  

The next 2 Screenshots show how my tax return has been filed in 2020.  

This below was not sent to the IRS in my Return (Attention) I changed this for the example you have given me given me.

I understand completely your replay from April 24 and possibly I have been taking this option for all being corrrect,  however since 2016-2018, as well as via Turbotax I first used in 2019, the sum for line 1a of  Form 1116 was, up till this year(2020), to my knowledge automatically  placed on line 1a of Form 1116. Naturally the paid tax to the Country (Germany)  was prompted to be entered.  After this entry all took it's natural way and all was calculated correctly.   I can also send you the Screenshsots from 2019, with the method used as in the first two Screenshots if you may need these. 

Also in 2019  this method was accepted, without any turnbacks or negative information from the IRS concerning past returns. 

Please let me know what your opinion is on this method.  If needed, I'd have to  Amend my Return via Turbotax, as I for some reason I can't do any alteratioins to the orginal anymore, althougjh I never ended my filing in Turbotax fo 2020, it was ended and closed automatically.  I had been bouncing back and forth the past week and changing my results and calculations and suddenly today all was closed up. 

Thank you for your support.

[Dfaz]

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