Problem with Form 1116- Foreign Taxes

[Julie Kuntzendorf]

I'm having the same problem today.  How did yours get resolved?  Has the TT software for this been fixed?

[fred97]

No, apparently Intuit isn't interested in fixing their software. Fortunately, one of the countries had a relatively small amount of taxes I paid. To avoid all the gymnastics to try to override the program, I just sucked it up and filed listing only one country.

[DARichards]

To my knowledge TT has not fixed their programming (I filed a couple weeks ago).  The manual work around described in this chat topic worked for me- making a separate 1099 for each country.    Clunky, but it works.

[Larry McLimans]

How can I enter the country when the 1099-DIV shows the countries as various?

[LindaS5247]

It is ok to enter "various" for your countries.

[midnightbrigand]

Why DOESN'T TT FIX THE FOREIGN INCOME AREA? GOOD QUESTION. THEY HAVE NOT FOR YEARS AND THEY DON'T SEEM TO CARE.

[Bikerider1]

I have for the last three-four years brought up the problem with Turbo Tax's software problem in handling Foreign Taxes.  Spoke with several representatives about the problem.  Still not resolved in their 2025 software.  It is very frustrating when they don't resolve a software problem that is brought to their attention.

[paullink]

I know this discussion is 3 years old, but TT has still not fixed this issue. Is it legal to handle the foreign tax credit in this manner?  I’m asking because the 1099 DIV will not match what the payer sent to the IRS. 

[user17733136965]

Hi.

First- I am not an attorney, or CPA.  In my 3+ years of using this work around method, it has never been an issue for me.  Never audited, or questioned about handling the foreign tax reporting this way.  In my view, I think the IRS just cares about the bottom line- getting the correct amount of money.  Also- in my situation the foreign taxes are generally small in comparison to the overall tax liability.  I (and others) are making a good  faith effort to accurately report our data using industry recognized software to comply with the increasingly Byzantine IRS taxe code.  

[paullink]

Thanks!

[jnltaylor]

I also agree.  IRS just wants the total foreign dividend and taxes paid total correct.   Then the calculation to ensure an adequate tax rate is verified in the FORM 1116 and done by TT.

There was likely a deeper tax insight IRS did want, but given so much is from publicly traded stocks, there is little insight to find.   

Personally, I go into FORMS and manually enter the data by country and combine $ from different accounts for the same country.  Because TT has failed to correct its software for the past 4 years, I find the Q&A approach as a failure. 

In the end, when I run the Check for Errors as one of the final TT steps, there is sometimes a small detail to add to the form, which I overlooked.  After the error check, the FORM 1116 is completed in compliant with the IRS Code.  

[DARichards]

When posting this response, I forgot one of the most important items- after creating the pseudo 1099-DIV for each specific country, make sure to go back to your original 1099-DIV where all these individual entries were found and subtract the total dividends, qualified dividends, and foreign tax paid from the original document.  You want to end up with the 'original' 1099 without any foreign taxes on it, and no foreign dividends, and individual 1099's - one for each country listed on your original 1099.  If you don't go back and subtract this out you will end up doubling your foreign dividends (and foreign tax paid)

[paullink]

Thanks for the follow up, but I knew to do that. I’ve transmitted my return, and it’s been accepted.