Foreign tax credit

Forum|Forum|6 years ago
December 7, 2019
2 replies
23 views

entering foreign tax withheld on dividends <screen 12 line 16 with a 1 on line 14>- taxpayer does have us tax but the credit is not appearing. (?)

Lacerte Tax

This topic has been closed for replies.

Best answer by George4Tacks

Possibly the income is low enough that the foreign income is qualified dividends that yield no tax. You get a credit for the lower of US tax or Foreign tax ON THAT FOREIGN INCOME.

Give some specifics if this doesn't answer your question. The 1 in code code 14 only points to what you have entered in the 1st instance of Screen 35, as to country and type of income. Try https://accountants-community.intuit.com/articles/1633001-reporting-foreign-dividends-and-withholding-for-form-1116-foreign-tax-credit

Kathi_at_Intuit

Moderator

Nice to have you in the community. Is it not appearing on the 1116, but appearing on the 1040?

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George4TacksAnswer

Level 15

Possibly the income is low enough that the foreign income is qualified dividends that yield no tax. You get a credit for the lower of US tax or Foreign tax ON THAT FOREIGN INCOME.

Give some specifics if this doesn't answer your question. The 1 in code code 14 only points to what you have entered in the 1st instance of Screen 35, as to country and type of income. Try https://accountants-community.intuit.com/articles/1633001-reporting-foreign-dividends-and-withholding-for-form-1116-foreign-tax-credit

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