TurboTax Form 1116 (Copy 1)

Turns out I did pay a substantial amount of Foreign tax credit. So I do need to use form 1116. Where do I find the info to enter for "TurboTax Form 1116 (Copy 1) - Foreign Tax Credit Comp Wks: Line A or Line B should have a value ......."

Thank you for any help.

Jeff

Whoever paid the foreign tax for you (almost certainly your broker) should be able to give you that information, might be time to grab the telephone and call 'em.

Sorry I can't be more help.

Thank you.

Thank you for replying.

The foreign tax paid is indeed shown in my 1099-DIV forms and the credit entered by TT in Form 1116.

What is missing and TT is asking me for is the "Amount of Foreign income (on which the foreign taxes were paid)/ total foreign income". That is what I do not have and am trying to get from the broker.

If your foreign tax is less than $600 you don't have to use Form 1116. Just go read the tax code that built into TurboTax. It has good built in help.

If the foreign tax is more than $600 you have no choice but to use Form 1116. Of course you don't have to take the Foreign Tax credit, but who would want to give up $600 of tax credits..??

All the 1099s I got from Fidelity and Scottrade shows exactly how much Div was paid by each stock. It even shows which country.

You just have to add up those amounts to get the amount of income from your foreign stocks. My 1099s also shows each month how much was foreign tax.

Maybe you should be using the hard copies of the 1099 instead of trying to download directly into TurboTax.

I admit both TurboTax and H&R Block tax programs can be tricky in getting the info to Form 1116. I usually run my info into both programs to make sure they agree.

By the way, if you don't have enough of the right type of incomes, it is also possible that you cannot take all the foreign tax credits, especially once you start using Form 1116. In that case you can "Carry Over" the unused amounts to next year.

By the way, Fidelity no longer takes the Foreign Taxes on my Canadian stock Dividends in my IRA account. At one point it was not a good idea to hold Canadian stocks that had Foreign Tax withholdings in IRA, since you could not take the Tax Credit. With the change in the law on the IRA rules I have switched my Canadian Div playing stocks to my IRAs just so I don't have to use the Form 1116s.

I thought Form 1116 was one of the worse I had to learn once I started dealing with high Div Canadian stocks. If this is your first year with Foreign Divs and you have very much income from this source you might want to use a CPA for the first year, then you can use their report as a guide next year when you try to do it yourself in TurboTax or any other tax software.

Also if your Foreign Income is from a foreign K1 investments you can have extra problems in figuring Form 1116. If you do a search on the following web page for 1116 you will find some of the special issues that applied with TurboTax 2010 and Form 1116.

Thank you so much for the clear and complete explanation. It helped a lot. It is indeed the first year I had to use Form 1116 and also the first year I had to take a mandatory IRA withdrawal. So things have been a little "tumulteous" .....

Thank you again.

Jeff