Question

Foreign tax credit on US interest income

Forum|Forum|6 years ago
February 22, 2020
1 reply
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Hi, I lived abroad for all of 2019 - all wages were earned in the UK, but I have US savings & mutual funds, so I have 1099-INTs and a 1099-DIV. I paid UK taxes on this interest and dividend income and I think that should entitle me to take a foreign tax credit? Where do I input that I have paid foreign tax on US interest/dividend income? In reading other posts, I don't think it is accurate to put the foreign tax paid in Box 6 (foreign tax paid) in the 1099-INT page, as I believe that TurboTax assumes this is a FOREIGN account, not a US account.

Would be really helpful to clarify where to claim foreign taxes paid on US interest/dividend income. Thanks in advance

TurboTax Deluxe Online

L

linaj20201

You would enter your Form 1099-DIV and 1099-INT as how they are reported on the hard copy. IRS is receiving a copy of the form, therefore, do not change the information.

To claim a foreign tax credit, you would need to file a Form 1116 Foreign Tax Credits. After entering the Form 1099-DIV and 1099-INTs, you would enter the information through these steps:

In TurboTax online,

Open up your TurboTax account and select Pick up where you left off
At the right upper corner, in the search box, type in "foreign tax credit" and Enter
Select Jump to foreign tax credit
Follow prompts

M

mytaxes-2015

This has not helped me at all. I have paid $236 in foreign taxes on foreign interest income, NOT U.S., and a CPA sends me this information? We couldn't be helped by Turbo Tax at all for getting this credit after spending around an hour trying. I'm trying to finish out my return and here we are without being able to take my foreign taxes paid. I never had problems before in the past 4 years using Turbo Tax!

Walter E. Hook, [email address removed]

DaveF1006

It doesn't matter if your 1099 INT or DIV is foreign or domestic. You will still report it even if it is issued by a foreign bank. if you don't have a hard copy 1099, still report it like you had one.

If a 1099-INT, you will record the Bank where it came from and the amount of interest. You will then check the box where it it says my form has more info than Box 1. Here you will record your foreign taxes paid in Box 6. Be sure to indicate in the beginning of the interview that you will type the information yourself.

If 1099-DIV, you will record the Bank where it came from and the amount of dividends. You will check the box that says my form has more information than just these boxes. Here you will report your foreign taxes in Box 7. Be sure to indicate in the beginning of the interview that you will type the information yourself.

[Edited 04-21-2021|04:17 PM PST]

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