Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Fidelity, TurboTax and foreign tax credit
Old 04-13-2021, 07:21 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Jul 2013
Posts: 1,142
Fidelity, TurboTax and foreign tax credit

Anybody here use TurboTax, have a Fidelity brokerage account and use the auto-import feature for the Fido 1099?

I ask because I learned recently that our 2019 taxes missed the foreign tax credit. And I verified that the 2020 return had the same problem, although I caught it before filing this year.

Anybody else aware of this issue? Thanks.
mrfeh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-13-2021, 07:42 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
We always had to enter it manually until recently when I think the total gets entered, but we still have to enter other info manually because we have to file form 1116 to get the credit.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 04-13-2021, 07:57 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2013
Posts: 1,142
Quote:
Originally Posted by audreyh1 View Post
We always had to enter it manually until recently when I think the total gets entered, but we still have to enter other info manually because we have to file form 1116 to get the credit.
Is there a step in the question/answer process where this is addressed? I'm wondering if my experience is user error, or if it's a bug.

Thanks.
mrfeh is offline   Reply With Quote
Old 04-14-2021, 05:14 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
Quote:
Originally Posted by mrfeh View Post
Is there a step in the question/answer process where this is addressed? I'm wondering if my experience is user error, or if it's a bug.

Thanks.
Yes, the interview process for foreign tax credit asks for the additional information, but you may have to initiate that process.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 04-14-2021, 06:25 AM   #5
Thinks s/he gets paid by the post
Philliefan33's Avatar
 
Join Date: Oct 2014
Posts: 1,320
I use the import function with TurboTax when available, but always check to make sure all of the information is correct by looking at the entries in the “interview” mode or following the flow of the numbers on the forms.

It’s nice not to have to do all of the entry, but worth the time to double-check the inputs.
Philliefan33 is online now   Reply With Quote
Old 04-14-2021, 06:28 AM   #6
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Sheltered in place
Posts: 34,546
Might there be a difference between versions of TT, where only the higher priced versions include the foreign tax credit in the interview process?
MichaelB is online now   Reply With Quote
Old 04-14-2021, 06:47 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
I think Deluxe worked the same as Premier on this. I’m pretty sure Deluxe also had the foreign tax credit interview process.

We only use the downloaded versions.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 04-14-2021, 07:23 AM   #8
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 2,335
I use TT Premier and download 1099s, etc. from Fidelity. Never had any problem with automatic import of Foreign Tax Paid. I always compare the imported numbers to a printed copy of the 1099. And then IIRC there's some required Q&A to convert the tax paid into a credit. I always have an estimate of the FTC in my tax forecast for the year. So I would definitely notice if it was missing in the final return.

Purely conjecture, but my guess would be that OP correctly imported Foreign Tax Paid from the Fidelity 1099, but did not complete the required Q&A to turn that into the FTC. I don't go through the entire TT interview process. But I selectively click-through each section where I have income, deductions, or credits... or where it's clear I have data that got imported.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.7% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 04-14-2021, 07:26 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,466
I think that TT doesn’t tell you which specific categories you must complete - at least not the more esoteric ones. We usually click on the categories we know apply to us.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 04-14-2021, 09:04 AM   #10
Thinks s/he gets paid by the post
GTFan's Avatar
 
Join Date: Apr 2013
Location: Atlanta
Posts: 1,071
Quote:
Originally Posted by Cobra9777 View Post
Purely conjecture, but my guess would be that OP correctly imported Foreign Tax Paid from the Fidelity 1099, but did not complete the required Q&A to turn that into the FTC. I don't go through the entire TT interview process. But I selectively click-through each section where I have income, deductions, or credits... or where it's clear I have data that got imported.
I think this is the right answer - I use TT free version (AGI under $39k) and it imports and places FTC correctly, but you do have to answer the questions.
GTFan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Turbotax vs Turbotax mpeirce FIRE and Money 40 04-15-2021 07:46 PM
Foreign Tax Credit - H&R Block vs TurboTax medelste FIRE and Money 7 04-29-2020 10:44 PM
H&R Block and foreign tax credit Sojourner FIRE and Money 50 05-02-2017 05:52 PM
tax software to handle foreign tax credit correctly? figner FIRE and Money 6 05-01-2012 03:17 PM
Nords, what became of the foreign tax credit issue with your PID ETF? hogtied FIRE and Money 1 08-24-2008 10:48 AM

» Quick Links

 
All times are GMT -6. The time now is 12:34 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.