1. Home
  2. Taxes General Forum
  3. Problems using From 1116

Problems using From 1116

Hi,

I am using TaxCut to prepare my taxes. Because my 1099 DIVs had total "Foreign Taxes" of $743, TaxCut told me I need to fill out a Form 1116.

TaxCut automatically transferred the Foreign Taxes from my K1s to the

1116, but left me to fill out the amounts ($743) from my 1099 DIV and flagged it an error till I did so. I therefore entered $743 in the mini-worksheet of "Part II" which transferred it to "c" column o and s totaling 743 on Form 1116 line 8.

BUT, that immediately increased (!) my "taxes due" by $776 from what it had been before I did this. That does not make sense to me. I would think that if I paid these foreign taxes, it should reduce taxes due to Uncle Sam not increase it. So I must have done something wrong. The

743 is the only figure I entered on the 1116. Should I have entered something else elsewhere? If so, where?

I am very confused. There are no other errors according to TaxCut's final error check.

Jeff

Reply to
Jeff
Loading thread data ...

Lines 3a,3c, 3d, 3e, etc... , 8,9, etc...

This is a confusing form.

I suspect that there is a different choice you could have made to cause Taxcut to make the 1116 entries itself from the 1099 and K-1 numbers rather than you having to fill it out on your own.

Reply to
DF2

Thanks for replying, but unfortunately that choice did not exist for the

1099 DIVs. I will look for it again.

Thanks for replying.

Jeff

Reply to
Jeff

So are there some 1099-DIV or 1099-INT choices for block 6 in your TaxCut program? Perhaps you choose which 1116 form copy this will go on to. You will probably have to supply the foreign source amount included in dividends. That amount will probably be between 6.6 to

10 times the amount from line 6 of the 1099-DIV or 1099-INT you received.

You would want to try a search at

formatting link

Reply to
DF2

I'll work with it.

Incidentally, why are there 2 copies produced of the 1116? Would one be to calculate AMT and the other for regular tax?

Jeff

Reply to
Jeff

That would be a common reason. Expect the forms to have an annotation at the top when you print them to distinguish the one for the AMT purposes.

Reply to
DF2

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.