turbotax

[TylerHayne]

?

[LeonardS]

Please post a question to this thread if you need help in preparing your tax return.

[beredna86]

HOW TO HANDLE A SMALL AMOUNT OF FOREIGN TAXES PAID ($31.96)?

[KurtL1]

How were the foreign taxes paid? How they are paid will determine how to enter the taxes paid.

If they are listed on a Form 1099-DIV, Box 7 the amount will automatically show on your return as a tax credit.

If you do not owe any income taxes as shown line 12b of Form 1040 then the tax credit will not be shown on your return and you will lose the credit this year. 

To not lose the credit you would enter the foreign taxes paid on Form 1116 and enter the income on which the taxes were paid. If you cannot use the tax credit on the 2019 taxes, using Form 1116 will allow you to carry the credit forward to 2020.

To enter the foreign taxes paid, you would:

• Enter foreign tax credit form 1116 in the Search Magnifying Glass in the upper right hand corner of the screen.
• Select Jump to foreign tax credit form 1116.
• Enter the information on the screens.

[beredna86]

THANKS SO MUCH!