Where should I report foreign tax fees/expenses in Turbotax when I clam foreign tax credit?

[MarilynG1]

Depending on what type of Foreign Income you have, the foreign tax you paid is reported in the Foreign Tax Credit section, under Deductions & Credits.

The income is reported in the Income section in the appropriate topic (such as Rental, Self-Employment, Wages, etc.)

If you paid Foreign Tax on a 1099-INT/DIV, when you report the income, the tax amount is carried over to the Foreign Tax Credit section for you.

Here's more info on Claiming the Foreign Tax Credit.

@ladyswg 

[ladyswg]

There are some fees charged when the foreign income incurred and the foreign tax paid. Can I deduct that from the foreign income? For example, the ADR fees.

[DaveF1006]

No, you are not allowed to deduct those fees.

[user17551539391]

Thanks for taking the time to read this.

I'm using TurboTax Home & Business 2024 (Desktop, Mac). I'm trying to claim the foreign tax credit for taxes paid on long-term capital gains and interest income from a foreign brokerage.

Here’s what I’ve done so far:

• The income was correctly reported in the appropriate sections of TurboTax, with the specific foreign brokerage name noted.

• However, when I go to claim the foreign tax credit, it only seems to pick up foreign taxes paid on dividends—not on capital gains or interest.

• The foreign brokerage name is also missing from the selection I need to make.

• Since there was no 1099 issued, TurboTax labels this income as such, and I don’t see a way to indicate it's foreign income.

• I tried entering it directly on Form 1116 via the worksheet, but that didn’t seem to work either.

Is there a straightforward way in TurboTax to tell it:
“This is foreign income, this is the tax paid—please apply the credit”?

Any guidance would be greatly appreciated!

Thanks,
Ben

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[Mike9241]

investment expenses are not deductible. however you can clain the FTC on Capital gains but it must be done through the Foreign Tax section

deduction and credits tab>estimates and other taxes paid>foreign taxes  click on update

did you pay foreign taxes .... click yes

have you already reported .........................click yes

click continue

tell us ............. check none apply

foreign taxes ............ click continue

deduction or credit .............. choose. all Foreign taxes must be taken either as a credit or deduction you can not take some one way and some the other

reporting click continue

no other income .............. click no

click continue twice or whatever 

type of income .   in this case passive

enter beeded info

finally you should see a page that says -other gross income 

note for LTCG you may need to reduce the amount  because of the maximum tax rate that applies - see form 1116 page 9

https://www.irs.gov/pub/irs-pdf/i1116.pdf 

foreign taxes paid - various - make sure no is checked

enter the foreign taxes on the other income line