Foreign Tax Credit Schedule 3 Line 1 Less than Combined 1099-DIV Box 7

[Cactus Jake]

I am using TT Deluxe desktop.

I have entered two 1099-DIVs with amounts in Box 7 that total $163.85.

I have gone through the Foreign tax questions and allocated the dividends to appropriate countires.

However, Schedule 3, Line 1 Foreign Tax Credit Worksheet shows only $144 and that is the figure that flows through to the 1040, Line 21. As a result, I am not getting full credit for the foreign tax withheld. 

I qualify for the exemption from using form 1116 as the amount is under $600. Foreign income is all dividends from RIC or Taiwan. An explanation for the $20 difference would be appreciated. 

[rogge1722]

Is the amount on form 1040 line 18 at least $164 to support the full credit?

[Cactus Jake]

Line 18 of 1040 is larger than credit.

[rogge1722]

Did you have any carryovers from TY2020 posted on form 1116 line 10?

[Cactus Jake]

No carry over. If there were, it should increase the credit up to the limit.

My only thought is that there is some reduction in credit for Taiwan taxes, but I haven't found a reference to it. Last year all foreign dividends were attributed to RIC and the whole amount flowed through to the 1040. This year most is RIC, but some is Taiwan.

[rogge1722]

Bring up form 1116.  In Part 2, are the dividends for each 1099 displayed and is the total on line 8 the full amount?