Why do I not need to file form 116?
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Why do I not need to file form 116?

This is the message that comes up in TT:

"Your foreign tax credit is $116.

Your election to take the foreign tax credit without filing Form 1116 is effective only for 2018 and doesn't carry over to future years. If you're eligible to claim a foreign tax credit in 2019 without filing Form 1116, you must elect again next year."

This is my first year with TT. Previously CPA's that I used always filed form 116 for me for even smaller amounts of foreign tax paid (and therefore foreign tax credit). Do I really not need a form 116 and if so, why? (I am an American citizen living abroad ).
1 Reply
Level 8

Why do I not need to file form 116?

TT is by default using the exemption. The credit is posted on line 48 of the 1040 wks. and you are done with regard to foreign taxes.

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