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I use H&R Block downloaded software.
Normally I just enter the 1099-DIV and the foreign tax paid is less than $600 in total (married) and it works, I get the credit.
This year I am getting a ~$2K income from RRIF (Like IRA) from Canada, and they took $263 taxes.
Our 1099-DIV is only $322. Adding in the Canadian one and its $585 so should be totally acceptable.
Figured I have to fill out a form 1116 for foreign tax paid for this new income
I did that and the result was only $216 of the Canadian paid tax was allowed as credit. Worse is it removed the existing $322 foreign credit . This is stupid (to me) as the existing amount was unrelated.
I need to figure this out, as next year I plan on taking ~18K from Canada, so will have foreign tax of ~$2,700 just from Canada.
I did a second form 1116 for the 1099-DIVs , to claim the $322 back, and entered in the Total Divs on the 1099 form ? Seems to me, the total DIV's number is wrong to use, but the foreign tax is scattered all over the statement from various funds.
Do I enter the total DIV amount per the statement ? Or add up all the div payments for each fund for the year
Finally, one person on the internet wrote, they just claim it exactly like an IRA and enter the foreign tax paid as paid to the Fed. Seems totally wrong to me, but works really well.
What is the right way
Normally I just enter the 1099-DIV and the foreign tax paid is less than $600 in total (married) and it works, I get the credit.
This year I am getting a ~$2K income from RRIF (Like IRA) from Canada, and they took $263 taxes.
Our 1099-DIV is only $322. Adding in the Canadian one and its $585 so should be totally acceptable.
Figured I have to fill out a form 1116 for foreign tax paid for this new income
I did that and the result was only $216 of the Canadian paid tax was allowed as credit. Worse is it removed the existing $322 foreign credit . This is stupid (to me) as the existing amount was unrelated.
I need to figure this out, as next year I plan on taking ~18K from Canada, so will have foreign tax of ~$2,700 just from Canada.
I did a second form 1116 for the 1099-DIVs , to claim the $322 back, and entered in the Total Divs on the 1099 form ? Seems to me, the total DIV's number is wrong to use, but the foreign tax is scattered all over the statement from various funds.
Do I enter the total DIV amount per the statement ? Or add up all the div payments for each fund for the year
Finally, one person on the internet wrote, they just claim it exactly like an IRA and enter the foreign tax paid as paid to the Fed. Seems totally wrong to me, but works really well.
What is the right way