problem with reporting foreign tax credit in TurboTax online

[apollog]

I am trying to report foreign tax credit on tax I paid in foreign country on rental income from a property located in that foreign country.

I enter the income in the Wage and income section (under Rental Properties and Royalties). The property is marked as having a foreign address.

I go to the Foreign Taxes section under "Estimates and Other Taxes Paid" and no matter what answer I give to "Before we begin, do you have any income left to enter?", I get a screen with "Looks like the Foreign Tax Credit doesn't apply this year"

So, I did a search and went directly to form 1116. But this will only let me report foreign tax paid in Dividends for dividends entered before. There is no way to enter tax that is related to the rental property.

Anyone can help?

Thanks.

[LinaJ2020 · Accepted solution]

You can claim a foreign tax credit on your foreign rental income.  Here are the steps: 

In TurboTax online,

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• On screen, "Tell Us About Your Foreign Taxes", do not check the first box. 
• (First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)". 
• Follow prompts
• Choose the Income Type, select "Passive Income"
• On screen, "Country Summary", add a country to continue
• Follow prompts
• On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount