Foreign Taxes Paid, Form 1116

[bills1040]

Can anyone give me info. on how important the date section is on form 1116? I only have a summary of foreign taxes paid from the brokerage, when I went through the statement I saw no indication as to a transaction that paid them at one time.I surmise that they were paid as the dividends were issued but that would be quite a bit of data entry. I chose a random date near the end of year.

First time poster, I appreciate any help.

Thanks,
wgs

[oceanlovin'ea]

Schedule B entry screen

Usually as you enter dividend information from the 1099 your screen will give you a place to enter foreign tax paid. Then it is carred to the 1116 without having to go to the form and try to fill it out.

[okie1tax]

Form 1116

If the only foreign taxes paid were from dividends, you should not be filing Form 1116. There should be a check box that allows you to designate the taxes as all from investment and it will be a direct entry on the 1040.

[wysiwyg.ea]

Foreign tax paid

There is a maximum of $350 or thereabouts that you can report on schedule B. Beyond that, 1116 is required.

[bills1040]

form 1116

Difficult to say if they were from dividends only as it was on a cover sheet from a brokerage statement that included foreign stock transactions, both adrs traded on NYSE as well as stocks traded on foreign exchanges.

I'm okay with using the form. simply concerned with the relevance of the date paid.
Thanks for replies.
wgs

[Burke]

There is a maximum of $350 or thereabouts that you can report on schedule B. Beyond that, 1116 is required.

Really? I have reported amts higher than that -- no 1116.

[AZ-Tax]

Most of my clients have 1099 Mutual Fund statements and

just used 12/31/09 as a date

[BOB W]

just used 12/31/09 as a date

Me too.....12/31.........

[Lion]

Mfj

Double the amount for MFJ to exclude Form 1116 and go directly to tax line.

[ChEAr$]

Double the amount for MFJ to exclude Form 1116 and go directly to tax line.

Do you have in mind joint ownership of the foreign securities even though a couple filing a joint return is considered one taxpayer?

[Lion]

No, just the qualifications

Just that IF you qualify to elect to claim the foreign tax credit without filing Form 1116, one of the bullet points in TTB 11-11 is: The total creditable foreign taxes paid are not more than $300 ($600 MFJ). They make no reference to who owns what, just that the limit for that election is $600 for MFJ and $300 for all other filing statuses.

By the way, you can also deduct on Schedule A, if that works out better in your situation.