Form 1116 Comp Wks - Reposting

Forum|Forum|2 years ago
July 9, 2023
1 reply
0 views

I posted this request on June 20 and have not received a response. Therefore, I am trying again:

I am having difficulty with Part I of this worksheet.

I have amounts entered in line 1c (interest and dividends) for three columns: A, B, and C. A is a single country, B and C are RIC's. I then go down to line h to enter Qualified Dividends and Capital Gains. In column A, the entire amount is Qualified so I entered the same amount as line 1c. However for columns B and C, according to my 1099div, something less than the total amount is designated as qualified. If I enter less than the total, the difference between the total on line 1c and the amount I enter on 1h shows up on line 1g, ordinary income. I then get a red error message.

For example, if total dividends on line 1c are $10,000 and the qualified amount on line 1h is $0, the difference of $10,000 ends up on line 1g. But the problem is I have a red error message.

The only way I can get rid of the red error message is to make the qualified amount on line 1h equal to the total amount on line 1c. The ending answer of the foreign tax credit allowed is correct, but the qualified amount on line 1h is not the amount reported on my 1099div.

pk12_2

Employee

@Bob-777 , hello, I saw your question recently but it was more than three weeks old and so assumed that you did not need help anymore. Let me look into this and will be back shrotly.

What I understand is that (a) you have dividends with foreign taxes paid from three sources ; (b) some is reported as qualified ; (c) you report these i.e. two RICs, one foreign but with qualified divs ; (c) the resulting 1116 does not look right and does not match the 1099-div.

Please can you confirm -- 1. Box 1(a) shows total dividend; 1(b) shows qualified dividends . 2. Box 7 shows the total foreign taxes paid; 3. Box 8 shows the foreign countries where foreign taxes were paid. 4. Do you have information on the foreign incoke associated with these foreign taxes -- either direct info from broker or per the information sheets when you are using broker statement -- for Mutual funds often you will see this a percentage of investment / income total.

Also note that mostly foreign entities declaring dividends are NOT qualified dividends .

Please answer my questions while I look at your issue

Bob-777Author

The information you listed for box 1a, 1b and 7 are what is listed on the 1099 Div. The broker also provided additional detail on the breakdown of the qualified and nonqualified dividends by each of the mutual funds in the account. That additional detail is what I used to fill out the information on the Form 1116 worksheet in Turbotax.

Part 1 of the 1116 worksheet is where I entered this detail. On line 1c, I entered the total interest and dividends for the account. This total was carried forward to line 1f. Then on line 1h, I entered the qualified dividends from the detail provided by the broker. After I entered the amount on 1h, Turbotax automatically entered an amount on line 1g which was the difference between the amount on 1f and 1h (1f-1h=1g). However, the resulting value in 1g is highlighted in red and there is a red error message on the left side where the form is listed (I am in forms view).

pk12_2

Employee

@Bob-777 , hello -- first thank you for all the information. I cannot exactly duplicate your situation yet but see hints of why the error message. Could you do me the favor of supplying the following info ( nothing that is personally identifiable ) --- 1099-div -- 1(a), 1(b), , 7 and from your broker's statement -- foreign source income and taxes paid for each of the countries involved. Also why do you say the qualified divs are also foreign -- ?

Any help is much appreciated