0b3hks...[at]sneakemail.com wrote:

- quote -

Without trying the claim through the forms, I will point out
that the FTC is only to grant you credit for those foreign
taxes you paid on the income to the extent that you had to
pay taxes on the same income in the United States. Since the
taxes paid are far in excess of the amount needed to be
paid, you were limited for your credit.

So it sounds like the software has done things right.

What country did you pay the taxes to? Most treaties limit
the amount that can be withheld and if so, you may be
entitled to a refund from the other country.

Tim Parris
US Tax Prep in Canada

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<0b3hks001[at]sneakemail.com> wrote:

- quote -

read the instructions to form 1116 very carefully
unfortunately, it can get somewhat technical & complex

if still unsure - consult a CPA/tax professional

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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I have asked this question on forums.turbotax.com and got no
responses. So I'll try it here.

I have $366 of foreign tax credit -- all reported on
1099-DIV (dividends and mutual fund distributions).

[TurboTax] In filling out the Form 1116: For Line 1a
"Gross income from sources within country shown", I entered
either the gross dividends from foreign companies (on
individual stocks) or the "Foreign Income After QDI Adj."
reported by Mutual Funds.

Form 1116 computes a credit of $93. I expect the $366
credit. In general terms, Form 1116 computes the tax credit
using the formula Foreign income/Gross income x Taxes on
Form 1040, Line 44. [The gross Income is before Capital
Loss Carryover.]

Am I doing something wrong? Or that is generally the case
(i.e. Form 1116 foreign tax credit is less that actual
foreign taxes paid)? Or is it just the combination of
factors in my case?

If I am not doing something wrong; then I should reduce the
tax credits to $300 and take the $300 credit without doing
F1116. How do I get Turbotax to do that?

TIA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >