msindc1
Level 4
‎04-28-2021 12:17 PM

Friends:

Taxpayer has $10,000 in ordinary dividends, $4,000 in qualified dividends, and $2,000 in capital gain distributions.  She has foreign tax paid of $100.  Her 1116 is treating ALL of that income as foreign-source.  I can't figure out why.  Can anyone help?

Micah

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PhoebeRoberts
Level 11
Level 11
‎04-28-2021 12:59 PM

At the bottom of the dividend input screen where you put the foreign taxes paid, you need to also enter the foreign source dividends, qualified dividends, and capital gains. If you have multiple dividend entries, verify that any of them linked to the 1116 have the foreign source amounts entered.

sjrcpa
Level 15
‎04-28-2021 01:00 PM

In the dividend entry, you need to tell it how much divs, qual divs  and cap gians (0 or -1) are foreign. When you don't enter these fields it assumes all of the divs are foreign.


The more I know the more I don’t know.

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