Question

Foreign Tax Paid - can't enter correctly

Forum|Forum|1 year ago
March 5, 2025
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I have a 1099-DIV that shows foreign tax paid to 11 different countries. When I try and enter the amount for each one individually under foreign tax credit it allows me to enter all 11 countries in the drop down but when I move on to where I enter the amounts it only allows me to enter for 2 countries and then tells me I'm done. If I select yes to review all of my dropdown entered countries are gone except for the first 2. I've done it ten times with the same result.

R

rogge1722

TT can support only one country per 1099. Here is a suggested workaround .

This is an example of the preparation to fill out a form 1116 for taxes paid by 3 countries within a 1099-DIV.

They are:

a: RIC which includes all mutual funds/ETF”s

b: Canada

c: United Kingdom

Three fictitious 1099-DIV’s will be created. The original 1099-DIV will be used for domestic income only.

Bring up a new blank 1099-DIV. For convenience name the payer the same as the country it represents. In this case the payer is RIC. From the broker’s supplemental info, insert into box 1a the ordinary dividends from any and all mutual funds/ETF’s. In box 1b, insert all qualified dividends from all mutual funds/ETF’s. In box 7, insert the foreign tax paid from all mutual funds/ETF’s. That completes the 1st fictitious 1099-DIV.

Bring up a 2nd blank 1099-DIV. Name the payer Canada. In box 1a, insert all the ordinary dividends from Canada; in box 1b all the qualified dividends from Canada and in box 7 the tax paid to Canada. That completes the 2nd fictitious 1099-DIV.

Bring up a 3rd blank 1099-DIV. Name the payer U.K. In box 1a, insert all the ordinary dividends from the U.K.; in box 1b all the qualified dividends from the U.K. The U.K. does not withhold taxes, but TT must see an amount in box 7 during the interview. Insert $1.00 into box 7 and subtract $1.00 from box 7 from either of the previous fictitious 1099’s. That completes the 3rd fictitious 1099-DIV.

On the original 1099-DIV, subtract all the foreign amounts from box 1a so that only the domestic ordinary dividends remain. Subtract all foreign amounts from box 1b so that only the domestic qualified dividends remain. Delete the amount in box 7, the foreign tax paid.

If there are more than 3 countries, TT will automatically generate additional F1116 copies as necessary.

If there are more than 6 countries, the screen with the header “Report foreign tax paid to XXX” will only display up to 6 payers. Additional payers are on the following screen.