Prompts for Form 1116?

[st2003]

I have interest income from a foreign bank account, and the foreign bank deducted taxes (>$600). 

Under "Deductions and Credits" Tab in TT I filled out the Foreign Tax section saying I have paid foreign taxes. At that point TT says that it will prompt me to fill out Form 1116, but it never does??!!

Where does TT ask how much taxes I paid in the foreign country, and then apply the appropriate credit?

Thanks
ST2003

[Anonymous · Accepted solution]

go to the 1099 interest form (use forms search box 1099 )  towards the bottom is section and a link to an 1116.   the category for the 1116 is passive (yes I know it's not the same as passive income from rentals but that's what the IRS says to use) 

[sjwarvi]

Form 1099-DIV shows I paid Foreign tax $55.01.   Do I need to report this on form 1116?   I've never received or filled out this form in the past.  Thank you.      

sjwarvi

[ThomasM125]

Since you paid more then $600 in foreign taxes, you will need to fill out one or more forms 1116. You can do this in TurboTax as follows:

Go to the "Foreign taxes" section under "Estimates and Other Taxes Paid" in the "Deductions & Credits" section of TurboTax to see if you qualify for a credit for foreign taxes paid.

[Perky63]

I keep getting prompts about this form and my one international fund which has a tax paid which I input and then system keeps asking for a specific line item on our K-1 which is zero, which he keeps rejecting...

How can we get past this question

Claude and Jeanette Perkins

[Perky63]

this an estate setup as a gift for my wife and siblings....its pays the taxes and not us....so not applicable...never had this problem before..

[Perky63]

This was a gift from the estate and we are not responsible for most of the taxes just a very small portion. There is nothing on line 4b3b on the K1.

[LinaJ2020]

If Form 1116 does not apply to you, you can simply remove it from the program.  Here are the steps:

In TurboTax online,

• Sign into your account, select Pick up where you left off
• From the left menu, select Tax Tools, click on the drop down arrow
• Select Tools
• Under Other helpful links, choose Delete a form
• Select Delete next to the Form 1116 and Continue with My Return

You will file the Form 1116 if you pay taxes for more than $600 on the same income to both foreign and US governments.  If you did not pay, you don't need to file.