Foreign Tax Paid

[dlbtaxdr]

I'm entering info from Merrill Lynch 1099. 1099 shows $11,105 of foreign tax paid. Included in that figure is $10,754 shown as non-reclaimable tax with a pay date following.
What do I do with this non-reclaimable tax?

[BOB W]

I have .....

...... never seen that before but it sounds like the non reclaimable amount can not be used against USA taxes....??????

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Maybe it is like the below

You cannot claim a foreign tax credit for income taxes paid or accrued to any country if the income giving rise to the tax is for a period (the sanction period) during which:

The Secretary of State has designated the country as one that repeatedly provides support for acts of international terrorism,

The United States has severed or does not conduct diplomatic relations with the country, or

The United States does not recognize the country's government, unless that government is eligible to purchase defense articles or services under the Arms Export Control Act.

The following countries meet this description for 2006. Income taxes paid or accrued to these countries in 2006 do not qualify for the credit.

Cuba.

Iran.

Libya (but see Note. below).

North Korea.

Sudan.

Syria.


Income that is paid through one or more entities is treated as coming from a foreign country listed above if the original source of the income is from one of the listed countries.

[BOB W]

Review....

..... the detail pages of the statement and you will probaly see which country the taxes were paid to.

[OldJack]

Great answer Bob.. I have never seen this before either.

[BOB W]

Isn't ................

............. google great........???????????????

[oceanlovin'ea]

Got to learn to

use Google more.

Every time I do, I learn something new. But it's not usually my first thought.

Linda F