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Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Valued Pioneer
Posts: 4
Registered: ‎04-17-2017
Accepted Solution

How do I enter more than 3 countries on form 1116

I have more than $600 in foreign dividends for the first time.  The software support for form 1116 is abysmal.  How do I enter more than 3 countries?  IRS instructions say add more columns on an attachment, but now way to do to this in the software.  If I enter more than one 1116 form it only carries the credit from one of them to the main return.

 

How do you use the software to enter more than 3 countries worth of dividends????

Esteemed Pioneer
Posts: 80
Registered: ‎11-22-2014

Re: How do I enter more than 3 countries on form 1116

On the download version to your PC, there is a panel where you can add an extra page.  It also enables you to edit.  However, if you add an extra page, at least with the download version, you cannot e-file.  This was the case last year and previous years.

Valued Pioneer
Posts: 4
Registered: ‎04-17-2017

Re: How do I enter more than 3 countries on form 1116

Thanks!  Yes, local PC version.  So where do you find that screen - I could not -- except for creating another form 1116?  (Because IRS says one 1116 per type of income - so this would be two 1116's both for passive income.

 

Thanks!

Esteemed Pioneer
Posts: 80
Registered: ‎11-22-2014

Re: How do I enter more than 3 countries on form 1116

On the toolbar that has Welcome/Federal/State... click on Federal, next click on Credits.  You will see a panel "Where Do You Want To Go?" followed by a list of items.  Select "Foreign Tax Credit" and click on "Go To".  You will get a panel.  You will see "+ Add Item".  Click on this and you will get another 1116.  You should see the first Form 1116 already started.  Click on Edit to re-open.  Let me know how you make out.

Valued Pioneer
Posts: 4
Registered: ‎04-17-2017

Re: How do I enter more than 3 countries on form 1116

Thanks - that's what I meant.  So it still generates 2 Passive Investment 1116's  - that is not how the IRS sounds like they want things (nor does the Block filing checker....) and prohibits efiling).  But I guess there's not really another workaround other than make a separate list and do a manual override...sounds 2 forms has worked for you with no issue in the past, so should be OK...

Esteemed Pioneer
Posts: 80
Registered: ‎11-22-2014

Re: How do I enter more than 3 countries on form 1116

The two Form 1116s results will be automatically consolidated and reported on Form 1040 Line 48.  Hopefully, you will get full credit.  Now when you go to e-file, you will run into an H&R software bug concerning the checked "passive" box.  I have never found a way around this and have ended up filing a paper return.  I have always disliked Form 1116 with a passion.  

Valued Pioneer
Posts: 4
Registered: ‎04-17-2017

Re: How do I enter more than 3 countries on form 1116

Thanks again - really appreciate it.  One more quick one if you have a second.  I didn't understand what to put in the form on part II column h through n (data of tax payment and local currency) since this is just dividend on foreign stock reported in dollars.  so I just left them blank.  What do you think?

Esteemed Pioneer
Posts: 80
Registered: ‎11-22-2014

Re: How do I enter more than 3 countries on form 1116

[ Edited ]

I have always left k to n blank.  Years ago I researched it and came to the conclusion that the IRS will take no exception. For the date paid I have always put 12/31/xx.  Let's face it, the dates vary and there is no room to report.  Columns k to n will not change your tax liability.  The key is what is reported on the1099-Div.  in U.S. dollars.

Esteemed Pioneer
Posts: 80
Registered: ‎11-22-2014

Re: How do I enter more than 3 countries on form 1116

Per the IRS instructions for Form 1116:

 

If foreign tax paid on passive income is reported to you in U.S. dollars on a Form 1099-DIV, 1099-INT, or similar statement, you don't have to convert the amount shown into foreign currency. This rule applies whether or not you can make the election to claim the foreign tax credit without filing Form 1116 (as explained earlier). Enter “1099 taxes” in Part II, column (j), and complete columns (o) through (s) for each foreign country indicated in Part I.