Problem entering multiple countries for foreign tax credit

Forum|Forum|6 years ago
February 20, 2020
2 replies
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I am using TT Premier. I have foreign taxes paid associated with dividends paid by three fund companies. According to the financial company 1099DIV, the countries for taxes are United Kingdom, Various, and Various. I understood TT instructions to be that to claim tax credit I had to enter all three "countries" separately; however, only the last entry I make shows up on form 1116, and I cannot figure out a way to do the multiples. Perhaps the problem is using UK, various, and various as the names of the countries.

Since all the income is the same category (passive dividends), can I just choose various as the country (even I know one of them is the UK) and total the income associated from UK, various, and various as a single entry? If not, what are the steps to make the multiple entries work properly?

Best answer by JulieS

If all of your foreign taxes are on 1099-DIV, you can select RIC for the country name. That indicates the dividends came through a Regulated Investment Company. In that case you don't have to list them all separately.

rogge1722

Employee

If the payer only lists the source as "various" and the countries cannot be identified, then all you can do is use "various" and treat the 2 as one. With regard to the UK, it does not withhold taxes to US taxpayers. Technically you would enter it in a separate column only to indicate the income from the UK but with no taxes withheld. This would require creating a 2nd fictitious 1099-div which is time consuming. I would just include it with the "various" for income purposes. Thus you will end up with only one column in the f1116.