I called TurboTax and they told me to put 0 in the field when it asks for foreign source. I don't feel like this is correct, but I also don't have anything listed on my 1099-DIV for that type of field. Does anyone know for sure if putting 0 would cause my filing to be incorrect or not?
I haven't called TT yet but from all that i have read online about the subject entering a zero seems to be the fix but I would also like to know if this is the correct fix. I dont want something coming back on me later on about it. I am in the process of doing a 1040X now to add some late 1099 forms i got in the mail on February 23 and i dont want to have to do another one to correct this foreign source problem!
If the 1099-DIV has a box 6 foreign tax then you should enter the portion of box 1 that generated the foreign tax. Often that will be the box 1 amount if all the foreign tax came from the same source but in the case of some mutual funds only a portion of box 1 will be what generated the foreign tax. Most brokers list the foreign tax and the source of that tax somewhere in the composite statements that they send.
That question should have been asked at the end the of the 1099-DIV interview but it does not until the error check finds the missing information. After entering it in the error check, you can return to the 1099-DIV interview to see the missing screen and go to the 1116 interview to claim the credit.
Entering a zero might satisfy the error, but a zero will not allow you to get a credit for the foreign tax paid in the form 1116 interview that either makes it a Schedule A deduction or a tax credit on the 1040 form line 48.
It's asking for the sum of your dividends that were foreign source. Look through the 1099-DIV detail and aggregate the dividends paid that were foreign. Zero is probably not correct if you paid foreign taxes.
TurboTax update R21 (March 14) to fixed this issue on my return. The 1099-Div Worksheet now acts properly and doesn't ask for an entry for line "d" in box 6 if the box on line "a" is checked (opting for deducting foreign taxes on Schedule A). No longer a need to enter a zero on line "d" if you opt for Schedule A treatment.
The answer from TurboTax is correct in most cases. Enter '0' for line 6 D (2017) or 7 D (2018). If you are trying to deduct Foreign Taxes paid using Form 1116 often this is because you had a mutual fund that invest in foreign stocks however per Vanguard 1099 small print,
"U.S. mutual funds that invest in foreign securities may elect to pass certain foreign taxes paid by the fund on to their shareholders on IRS Form 1099-DIV; however, because the funds are U.S. corporations, the dividends paid by the funds are considered U.S. source dividends."
New for 2017 is the following flaw: If there is an entry in 1099-DIV box 6, TT will immediately and incorrectly require an entry in box 6d and will mark it as an error until an amount is entered. Box 6d is “the foreign source amount included in dividends.” If F1116 is filled out, there is a screen to input that amount which TT will insert into box 6d and thus clear the error. If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error.
I chose tax credit for the foreign tax paid. No F1116 was created. That form says not to enter data directly on it. I don't understand what to do to get around this error. Please - This needs to be fixed ASAP.
TT is tripping me up with this same issue. Thanks for having the "enter 0" solution, but before I file it would be nice to have some sort of official confirmation that this solution is not shortchanging us in any way. I am taking the credit and am under the $600 filing-jointly limit. Looking forward to any confirmation TT can provide...
I agree, TT should fix their software. I ran into three software glitches with my simple filing this year: the Form 2210A1 error; the Educational Expense error, and this 1099-DIV Box 6d flaw. Not sure why TT isn't taking these software glitches more seriously, it would have saved many of us some frustration and wasted time. TT used to be the gold standard, now it has gone downhill. Not sure I want to pay TT to bang my head against the wall anymore.
Please Note: One of the following Answers explains that some brokerages report this data in summary form and for others we'll need to calculate it. However, this just brings us around full circle to the original question... is digging out that data and making these foreign source income calculations the appropriate solution for this Intuit Turbotax software error?
For those of us under the $600, it looks like this would be a big waste of time, the worksheet does not appear to do anything with that input value. So, in effect Intuit TurboTax is requiring us to do additional unnecessary tax calculations in order to input a value into one of their TT tax worksheets that then promptly ignores the value and does nothing with it. Thanks, Intuit TurboTax. Or... if this value is needed and the TurboTax software simply fails to properly use it, then everyone that was advised to simply input a zero is now hosed. It would be nice if Intuit would show some consideration to those of us that bought their software by addressing their TurboTax software glitch.
rogge1722, we got this error as well with TT wanting us to fill in "foreign source income." You say, "If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error." I know we didn't take the deduction but I am not sure about the exemption option. We elected to receive the foreign tax credit without Form 1116. So would ours be a "type a zero into box 6d" scenario?
Thank you. I admit I am annoyed to have this stumbling block. We have had the same <$40 amount for foreign taxes paid for years, always taken the credit, and never been asked this question.
I entered a number other than 0 in Box 6d. Does anyone know how to bring up the 1099-DIV worksheet so I can correct this error? I am using online version. I can't believe TT cannot fix this error in their software.
Can someone please translate this answer into English? What exemption? If I elect not to choose the mystery exemption, what value should be input here? Where can one find the info needed to make these choices? The given answer is about as obtuse as one could imagine it could be.
If you are experiencing this issue, it is likely that you are not electing to not file Form 1116. In order to make that election you must click two check boxes. The two check boxes come up during the Foreign Taxes interview. They read as follow: "You have no more foreign taxes to enter other than those already entered on a 1099-DIC, 1099-INT, 1099-OID, or Schedule K-1" and "You have no foreign tax credit carryovers from earlier years, or you have carryovers and you agree NOT to use them this year." If you do not check these boxes TurboTax will ask you for the foreign source income and fill out Form 1116.
I've had the same issue with box 6 as everyone else reporting the problem. The answer TT gives is doesn't explain the consequences of entering "0" into boxes not reported by the issuing financial institution. This issue has not occurred in previously years and deserves a better explanation by TT. Was this software rushed out the door without being tested by those who will actually use it?
The problem seems to be that there is a data entry screen that is supposed to appear in the 1099-DIV interview if there is an amount in box 6 that asks for the foreign source dividends but that screen does not appear so the final review tags the missing data as an error. Most brokers will show the foreign source dividends somewhere on the statements that they send. Just enter that amount for box 6d, repeat the 1099-DIV interview and the missing screen will appear.
Then go to the 1116 interview and when you indicate that the only foreign tax is on a 1099-DIV, the software will find the 1099-DIV with box 6 and properly enter it.
The answer says "If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error."
The Income Tax thing is stressful and ugly enough on its own. It would be nice if I didn't have to work around SW bugs not knowing if I was short changing myself. This type of stuff is what will make me go to a tax accountant next year! Please fix this "bug" !
@pjlk The developers say it is not a bug. You just have not gone through the Deductions & Credits "Foreign Tax Paid" interview that enters the missing values. Just reporting the tax on a 1099-DIV or 1099-INT does not indicate how that tax should be reported. There is an entire interview for that.
@macuser_22 - this is false, either you misunderstood the devs or the devs don't understand the problem people are having. I filled out that section, and the software explicitly told me that I didn't need a form 1116. Then at the end I get this error with no clear way to resolve it. Then I went back, and tried to trick the software into letting me fill out a 1116, to see if that would resolve it, but was then faced with a million questions which were not relevant to my situation. In the end, I had no solution to this...
I tried with H&R blocks software, had no problem whatsoever with this.
I fully agree. They fail to acknowledge the problem. Entering the foreign source income in the smart error check does resolve getting the credit without the 1116 form.
I had a Dodge and Cox International Fund, and claimed the foreign tax paid. For the Foreign Source amount included in dividend, I referred to the D&C supplemental tax guide, where they showed Foreign Source income percentage, 98.6 in this case. So I multiplied the div amount by 0.986 and entered that.
My 1099 DIV worksheet only has a Box 6 in it and no Box 6d. Where do I find Box 6d to enter a zero in it? Also I can't see a Form 1116 anywhere. Please help me get rid of this "Foreign Source amount required" error so I can e-file my return.
Box 6d didn’t come up on my taxes until the review was done, that’s when it went to where I needed to to enter my information. I’m pretty sure TT corrected that error so it should enter the information for you now.
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Why do you want to report this?
What does "Foreign source amount included in dividends" mean in Box 6d of the Form 1099=DIV Worksheet? And where do I finds the information?
What does "Foreign source amount included in dividends" mean in Box 6d of the Form 1099-DIV Worksheet? And where do I find the information?
Why do you want to report this?
I called TurboTax and they told me to put 0 in the field when it asks for foreign source. I don't feel like this is correct, but I also don't have anything listed on my 1099-DIV for that type of field. Does anyone know for sure if putting 0 would cause my filing to be incorrect or not?
Why do you want to report this?
I haven't called TT yet but from all that i have read online about the subject entering a zero seems to be the fix but I would also like to know if this is the correct fix. I dont want something coming back on me later on about it. I am in the process of doing a 1040X now to add some late 1099 forms i got in the mail on February 23 and i dont want to have to do another one to correct this foreign source problem!
Why do you want to report this?
If the 1099-DIV has a box 6 foreign tax then you should enter the portion of box 1 that generated the foreign tax. Often that will be the box 1 amount if all the foreign tax came from the same source but in the case of some mutual funds only a portion of box 1 will be what generated the foreign tax. Most brokers list the foreign tax and the source of that tax somewhere in the composite statements that they send.
That question should have been asked at the end the of the 1099-DIV interview but it does not until the error check finds the missing information. After entering it in the error check, you can return to the 1099-DIV interview to see the missing screen and go to the 1116 interview to claim the credit.
Entering a zero might satisfy the error, but a zero will not allow you to get a credit for the foreign tax paid in the form 1116 interview that either makes it a Schedule A deduction or a tax credit on the 1040 form line 48.
Why do you want to report this?
It's asking for the sum of your dividends that were foreign source. Look through the 1099-DIV detail and aggregate the dividends paid that were foreign. Zero is probably not correct if you paid foreign taxes.
Why do you want to report this?
TurboTax update R21 (March 14) to fixed this issue on my return. The 1099-Div Worksheet now acts properly and doesn't ask for an entry for line "d" in box 6 if the box on line "a" is checked (opting for deducting foreign taxes on Schedule A). No longer a need to enter a zero on line "d" if you opt for Schedule A treatment.
Why do you want to report this?
The answer from TurboTax is correct in most cases. Enter '0' for line 6 D (2017) or 7 D (2018). If you are trying to deduct Foreign Taxes paid using Form 1116 often this is because you had a mutual fund that invest in foreign stocks however per Vanguard 1099 small print,
"U.S. mutual funds that invest in foreign securities may elect to pass certain foreign taxes paid by the fund on to their shareholders on IRS Form 1099-DIV; however, because the funds are U.S. corporations, the dividends paid by the funds are considered U.S. source dividends."
Thus '0' is the correct answer!
- Asked by kirk.ramer
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TurboTax Premier
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New for 2017 is the following flaw: If there is an entry in 1099-DIV box 6, TT will immediately and incorrectly require an entry in box 6d and will mark it as an error until an amount is entered. Box 6d is “the foreign source amount included in dividends.” If F1116 is filled out, there is a screen to input that amount which TT will insert into box 6d and thus clear the error. If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error.
Why do you want to report this?
I chose tax credit for the foreign tax paid. No F1116 was created. That form says not to enter data directly on it. I don't understand what to do to get around this error. Please - This needs to be fixed ASAP.
Why do you want to report this?
Are you in the foreign tax credit interview?
Why do you want to report this?
Having same issue.
Why do you want to report this?
I just entered zero as rogge1722 suggested. It let me proceed and did not alter my payment due amounts.
Why do you want to report this?
The same problem... entered a 1099-DIV with a Box 6 amount, but it is for a broad-based mutual fund with no 6d information.
Why do you want to report this?
Same here. I took a credit and need to enter something in 6d.
Why do you want to report this?
TT is tripping me up with this same issue. Thanks for having the "enter 0" solution, but before I file it would be nice to have some sort of official confirmation that this solution is not shortchanging us in any way. I am taking the credit and am under the $600 filing-jointly limit. Looking forward to any confirmation TT can provide...
Why do you want to report this?
Same problem -- taking credit but forced to enter amount in 6d to proceed. Will try 0.
Why do you want to report this?
Per the other answer, you need to manually go through the steps in Reporting Foreign Taxes Paid.
Why do you want to report this?
Why doesn't TT issue an update to your software to correct this issue?
Why do you want to report this?
Ran into the same issue even though I selected the credit option.
Why do you want to report this?
Same here. I put 0 to fix but maybe you should patch your software
Why do you want to report this?
I agree, TT should fix their software. I ran into three software glitches with my simple filing this year: the Form 2210A1 error; the Educational Expense error, and this 1099-DIV Box 6d flaw. Not sure why TT isn't taking these software glitches more seriously, it would have saved many of us some frustration and wasted time. TT used to be the gold standard, now it has gone downhill. Not sure I want to pay TT to bang my head against the wall anymore.
Why do you want to report this?
When will this be fixed? It's causing me grief.
Why do you want to report this?
Same issue here. Will just entering 0 have any adverse impact on my tax filing?
Why do you want to report this?
Same issue here
Why do you want to report this?
I am a bit afraid to just change the 1099-DIV and put zero. Doesn't IRS software "match" entries to be sure you are reporting everything correctly?
Why do you want to report this?
Please Note: One of the following Answers explains that some brokerages report this data in summary form and for others we'll need to calculate it. However, this just brings us around full circle to the original question... is digging out that data and making these foreign source income calculations the appropriate solution for this Intuit Turbotax software error?
For those of us under the $600, it looks like this would be a big waste of time, the worksheet does not appear to do anything with that input value. So, in effect Intuit TurboTax is requiring us to do additional unnecessary tax calculations in order to input a value into one of their TT tax worksheets that then promptly ignores the value and does nothing with it. Thanks, Intuit TurboTax. Or... if this value is needed and the TurboTax software simply fails to properly use it, then everyone that was advised to simply input a zero is now hosed. It would be nice if Intuit would show some consideration to those of us that bought their software by addressing their TurboTax software glitch.
Why do you want to report this?
My 1099-DIV forms do not show a box 6d. now what am I to do to get rid of the error?
Why do you want to report this?
rogge1722, we got this error as well with TT wanting us to fill in "foreign source income." You say, "If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error." I know we didn't take the deduction but I am not sure about the exemption option. We elected to receive the foreign tax credit without Form 1116. So would ours be a "type a zero into box 6d" scenario?
Why do you want to report this?
While not readily available on my 1099-DIV, I emailed my financial advisor and asked what the amount should be and they told me.
Why do you want to report this?
Thank you. I admit I am annoyed to have this stumbling block. We have had the same <$40 amount for foreign taxes paid for years, always taken the credit, and never been asked this question.
Why do you want to report this?
I entered a number other than 0 in Box 6d. Does anyone know how to bring up the 1099-DIV worksheet so I can correct this error? I am using online version. I can't believe TT cannot fix this error in their software.
Why do you want to report this?
I have a Mac but there was a Forms button in the top left of the TurboTax screen.
Why do you want to report this?
Can someone please translate this answer into English? What exemption? If I elect not to choose the mystery exemption, what value should be input here? Where can one find the info needed to make these choices? The given answer is about as obtuse as one could imagine it could be.
Why do you want to report this?
If you are experiencing this issue, it is likely that you are not electing to not file Form 1116. In order to make that election you must click two check boxes. The two check boxes come up during the Foreign Taxes interview. They read as follow: "You have no more foreign taxes to enter other than those already entered on a 1099-DIC, 1099-INT, 1099-OID, or Schedule K-1" and "You have no foreign tax credit carryovers from earlier years, or you have carryovers and you agree NOT to use them this year." If you do not check these boxes TurboTax will ask you for the foreign source income and fill out Form 1116.
Why do you want to report this?
I've had the same issue with box 6 as everyone else reporting the problem. The answer TT gives is doesn't explain the consequences of entering "0" into boxes not reported by the issuing financial institution. This issue has not occurred in previously years and deserves a better explanation by TT. Was this software rushed out the door without being tested by those who will actually use it?
Why do you want to report this?
The problem seems to be that there is a data entry screen that is supposed to appear in the 1099-DIV interview if there is an amount in box 6 that asks for the foreign source dividends but that screen does not appear so the final review tags the missing data as an error. Most brokers will show the foreign source dividends somewhere on the statements that they send. Just enter that amount for box 6d, repeat the 1099-DIV interview and the missing screen will appear.
Then go to the 1116 interview and when you indicate that the only foreign tax is on a 1099-DIV, the software will find the 1099-DIV with box 6 and properly enter it.
Why do you want to report this?
The answer says "If F1116 is not filled out because the user elects to use the exemption or the deduction, then bring up the 1099-DIV worksheet and type a zero into box 6d to remove the error."
But I don't see 6d field in 1099-DIV
Why do you want to report this?
The Income Tax thing is stressful and ugly enough on its own. It would be nice if I didn't have to work around SW bugs not knowing if I was short changing myself. This type of stuff is what will make me go to a tax accountant next year! Please fix this "bug" !
Why do you want to report this?
@pjlk The developers say it is not a bug. You just have not gone through the Deductions & Credits "Foreign Tax Paid" interview that enters the missing values. Just reporting the tax on a 1099-DIV or 1099-INT does not indicate how that tax should be reported. There is an entire interview for that.
Why do you want to report this?
@macuser_22 In my mind it is a bug. I am not required to complete F1116, and yet TT is saying I have to fill in box 6d on F1116.
Why do you want to report this?
"
Why do you want to report this?
@macuser_22 - this is false, either you misunderstood the devs or the devs don't understand the problem people are having. I filled out that section, and the software explicitly told me that I didn't need a form 1116. Then at the end I get this error with no clear way to resolve it. Then I went back, and tried to trick the software into letting me fill out a 1116, to see if that would resolve it, but was then faced with a million questions which were not relevant to my situation. In the end, I had no solution to this...
I tried with H&R blocks software, had no problem whatsoever with this.
Why do you want to report this?
I fully agree. They fail to acknowledge the problem. Entering the foreign source income in the smart error check does resolve getting the credit without the 1116 form.
Why do you want to report this?
I had a Dodge and Cox International Fund, and claimed the foreign tax paid. For the Foreign Source amount included in dividend, I referred to the D&C supplemental tax guide, where they showed Foreign Source income percentage, 98.6 in this case. So I multiplied the div amount by 0.986 and entered that.
Why do you want to report this?
The problem seems to have been fixes in the latest update.
Why do you want to report this?
This bug wasted a significant amount of my time.
Why do you want to report this?
My 1099 DIV worksheet only has a Box 6 in it and no Box 6d. Where do I find Box 6d to enter a zero in it? Also I can't see a Form 1116 anywhere. Please help me get rid of this "Foreign Source amount required" error so I can e-file my return.
Why do you want to report this?
Box 6d didn’t come up on my taxes until the review was done, that’s when it went to where I needed to to enter my information. I’m pretty sure TT corrected that error so it should enter the information for you now.
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