To report foreign interest income, I used the 1099-INT section. The country I have interest income on does not follow FEIN. How do I override needs review?

[KarenJ2]

If this is preventing you from e-filing you can delete it from the 1099-INT section and enter it as other miscellaneous income.  If you have foreign tax on the interest to report , then this will not be an option if you want to claim the credit.

1. Click on Federal on the left hand side of the screen
2. Click on Wages & Income
3. Scroll down and click on All Income if Needed
4. Scroll down to Less Common Income
5. Scroll down to Miscellaneous Income, Click Start
6. Scroll down to Other reportable Income
7. Click start
8. Enter description and amount

[vijaydesouza]

Hi Karen,

Thank you for the information. I do have a foreign tax credit to report for approximately $350. Is there a way to e-file with foreign tax credit or the only option i have is to let go of this foreign tax credit?

[KarenJ2]

Do you have any other passive income (dividends, stocks, etc) where you could move the passive foreign tax and add to another foreign tax already entered?

[vijaydesouza]

Hi Karen,

Appreciate your quick response. I do not have any stocks or dividends to report (either in US or the foreign country). I have the following for income:

1. One W2 entry for Salary

2. Two 1099-INT entries for interest on US banks

Let me know in case there is no other way to get this reported in TurboTax. If no options exist, i will simply let go off it at this point.

[ThomasM125]

If you paid taxes on your foreign income, you can 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.

You will be asked to enter your foreign income for the year and your allowable credit will be based on the foreign taxes paid, your foreign income and your domestic income for the year.

You will be able to e-file even though you report the foreign taxes.

[vijaydesouza]

Hi Thomas,

Are you recommending that I take off my foreign interest income from 1099 INT and have them added under the section you suggested? I remember going through that section and it read information from 1099 INT and deduced that i am eligible for foreign tax credit. I am not aware if this will work if i delete the entries from 1099 INT and still consider the same.

[LinaJ2020]

Yes, you should enter the foreign interest income under Other Income.  See instructions above from KarenJ2

Without a Form 1099, you will still be able to claim a foreign tax credit on the 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, select None of these apply and Continue
• Follow prompts
• On-screen, Choose the Income Type, check Passive Income
• Follow prompts
• On-screen, Other Gross Income-Foreign country, enter description and amount
• Follow prompts, 
• On-screen, Foreign Taxes Paid-foreign country
• Under Foreign Taxes on Other Income, enter the amount
• See the images below

@vijaydesouza

[doctaxquestion]

Can interest earned (and tax already paid) from several bank accounts be combined into one total and written as one entry, or better to make separate entries for each bank and fixed deposit?

[LoganathanB]

Yes, you can combine them and report the total interest.

In case there are foreign taxes paid on any of the income, then to enter a foreign tax credit on form 1116

1. Open your tax return

2. Search for foreign tax credit and Enter 

3. Select Jump to foreign tax credit 

4. Start with the screen Foreign Taxes 

5. Select Continue to follow prompts.