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Returning Member
posted Jun 4, 2019 6:49:42 PM

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 ).

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1 Replies
Level 9
Jun 4, 2019 6:49:43 PM

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.