Question

foreign tax credit

Forum|Forum|6 years ago
February 26, 2020
1 reply
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I have four 1099 DIVs with foreign tax - two from Merrill Lynch and two from Vanguard. I fumbled around in TurboTax and followed directions from previous forums from last year. I managed to get a Form 1116 which corresponded to the sum of the two Merrill 1099s and the credit shows up on the 1040 schedule 3. But I cannot seem to add the Vanguard ones even though I do the exact same thing. What I did for each Merrill 1099 was to bring up each 1099, double click in the box on box 7 to link to the copy 1 of the 1116, then click box A and add the total dividend. By magic the two Merrill ones added together on the 1116. How do I get the Vanguard ones to add in ?

T

ThomasM125

You may need to go through the "Foreign Taxes" section in TurboTax. If your foreign taxes are over $600, you need to complete form 1116 and you need to got through this section to report everything properly. A separate form 1116 must be completed for each category of foreign income.

You will find the foreign taxes section under "Estimates and Other Taxes Paid" in the "Deductions and Credits" section of TurboTax,

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M

millerjc2860Author

Thank you Thomas!! I went back and followed all instructions in the "foreign tax credit" section and it worked. I had somehow misinterpreted one instruction and that led to multiple error messages and the problem I had. But all OK now. Thanks again.