Question

Form 1116 - 1a number is only 40% of the foreign dividends I received

Forum|Forum|1 year ago
March 7, 2025
1 reply
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Hello,

I added a Spanish bank manually as a 1099-DIV form. When I create the 1116 form, I add the full amount of dividend received, but when I look at the form, the field 1a has less 40.5% of that amount. This means I get less of the credit I should based on the foreign taxes I paid.
Is this a bug? There is no explanation for it.

R

rogge1722

If the total foreign qualified dividends are $20k or greater and/or an income level threshold is exceeded, the amount will be reduced "adjusted" . Bring up the f1116 comp worksheet and under part 1, g, h-k, you will see the details if the adjustment was utilized.