Question

Foreign Tax Credit

Forum|Forum|6 years ago
March 8, 2020
1 reply
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First time user of Turbo Tax Premier and I have Foreign Tax Credit carryovers from prior years, The version I'm using does not provide from 1116 entry, yet the message was I would need to add form 1116. I have no W-2 entries, retired and my prior accountant always provided foreign tax carry overs. The tax calculations suggested the best approach was to use the standard deduction...

I'm I using the right version of TurboTax ? and what happens to my foreign tax carryover if I stay with the Standard deductions?

K

KarenJ2

You can either deduct foreign taxes as an itemized deduction or you can claim them as a credit. However, you cannot claim foreign tax credit carryovers as a deduction. They can only be used for the credit.

If you are using the free version of TurboTax. you will need to upgrade to Deluxe to enter your foreign tax credit carryforward information.

Depending on your income, you may qualify for the IRS Free File Program.

How do I switch to IRS Free File Program delivered by TurboTax?

Before switching to the IRS Free File Program delivered by TurboTax,

it’s important to make sure you’re eligible for the product. If you answer yes to any of these question, you qualify:

Is your adjusted gross income (AGI) $36,000 or less?
Were you active duty military in 2019 with an AGI of $69,000 or less?
Do you qualify for the Earned Income Tax Credit (EIC)?

To switch to IRS Free File Program delivered by TurboTax:

Sign out of your existing TurboTax account.
Go to the IRS Free File delivered by TurboTax website and sign in to your same account from there.
Select Yes, switch to IRS Free File Program delivered by TurboTax when asked, and Continue.

Related Information:

What's the difference between IRS Free File Program and Free Edition?

Can I delete my tax return in TurboTax Online?

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