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Posted (edited)

When you process a clients 1099 Div and there is an amount in Foreign Taxes paid, Box 6, assuming you do not know what country is involved in this transaction and nothing is listed in the detail of the 1099, what country do you enter in the ATX entry form..."Other Country?"  Also, if there is no indication of what date the foreign tax was paid, do you enter a date in box 6B...maybe 12/31/14?

Edited by Yardley CPA
Posted

If long form not required, I don't even bother, just let the total go to 1040 page 2.  ATX gives a cautionary warning but doesn't prevent the efiling, no red print warning.

  • Like 5
Posted (edited)

For my one clients, Foreign Taxes Paid was $3...without a date paid or country entered, the refund on 1040 amounted to $2,713...after entering a date of 12/31/14 and entering "Other Country" the refund increased by the $3 to $2,716.  

Edited by Yardley CPA
Posted

If you don't have the 1116 in the return, entering the foreign tax from the 1099-div or K-1 will automatically populate the 1040 if under the $300 or so exception to filing the 1116. If the 1116 is in the return, you have to add all the other infor, including separating out the foreign Divs from the domestic.

  • Like 6
Posted

If you don't have the 1116 in the return, entering the foreign tax from the 1099-div or K-1 will automatically populate the 1040 if under the $300 or so exception to filing the 1116. If the 1116 is in the return, you have to add all the other infor, including separating out the foreign Divs from the domestic.

$300 single, $600 joint.

  • Like 3

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