Question

Federal Tax Credit Comp Wks, Qual Div and LT Cap Gains Calculation

Forum|Forum|6 years ago
March 7, 2020
1 reply
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My mutual funds paid foreign taxes >$600 (MFJ), and I am completing the Foreign Tax Credit. All foreign income is reported on Form 1099-DIV. I have an error message on Form 1116 that says "Foreign Tax Credit Comps. Wks: Qual Div and LT Cap Gains should have a value of at least $5126 based on the 1099-DIV that are linked with this country" and Part 1, Box H is highlighted.

How is the $5126 calculated? If I enter foreign-source qualified dividends (as reported on my 1099-DIV) in Box H, it reduces ordinary income below qualified dividends which doesn't seem right. Is it maybe an issue with entering total foreign income vs. qualified dividends?

K

klehnhardt

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