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March 10, 2025
Question

Foreign tax credit feature seems broken. Passive income from mutual funds, I enter "RIC" as instructed, and it says " You still have income not reported to a country."???

  • March 10, 2025
  • 1 reply
  • 0 views
It then asks "Do you want to continue so you can select a country to report dividend income on?" I continue, and get kicked back to step 1, then go through the loop again. I don't think I can file without somehow fixing this, because form 1116 just doesn't get completed?

    1 reply

    March 11, 2025

    During the interview, when you selected RIC, you then clicked "Done" instead of "Report Income." Return to the interview and insert the income.

    5763762Author
    March 11, 2025

    For anyone else facing this issue, the answer suggested above is not correct or helpful. Do not expect to see a field in which to "insert the income." There is no such thing. This is the interface in which you attribute previously reported foreign taxes paid to a COUNTRY, and the only interface elements are two country selectors. You select the country, and then you ... select the country again for some reason?

     

    And then what actually happens is that one must complete this circular process multiple times.

     

    You will FEEL like nothing has happened, as you're redirected back to the beginning of the sequence of questions and your input was ignored. So you choose "RIC" again, you advance, and at the end, you're instructed that you haven't done it. Don't exit. Follow whatever prompt gets you back to the beginning of the circle, and just DO IT AGAIN, as many times as necessary. 

     

    For me, it was, I believe 4 times, with no feedback about what was happening. It MAY be (speculating), that you have to do it TWICE AS MANY TIMES as the number of individual <foreign taxes paid> items you reported. No idea. But if you just keep going through the circle, it may eventually work. 

     

    Extremely confusing. ¯\_(ツ)_/¯

     

    But anyway, Turbotax is a parasite, the tax code should be radically simplified, and the IRS should "do" most people's taxes for them automatically, because it already has all the information it needs. 

     

    For some people this is a good option: https://directfile.irs.gov/