grandmabee Posted February 24, 2009 Report Share Posted February 24, 2009 form 1116 not ready yet. but I have a 1099-div with foreign tax with held. Per instructions I can just put on 1040 without using the 1116. meets all exceptions. ( under 300, shown on 1099-div etc...) But when I use the 1116 is gives me a lower tax credit than if I just go the 1040. What am I missing? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 24, 2009 Report Share Posted February 24, 2009 Why would you want a lower tax credit, which means a higher tax? Quote Link to comment Share on other sites More sharing options...
grandmabee Posted February 24, 2009 Author Report Share Posted February 24, 2009 Why would you want a lower tax credit, which means a higher tax? I don't want a lower tax credit. What i was asking is if you don't use the 1116 you get more credit and if you use the 1116 you get a lower credit. Why is that? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 24, 2009 Report Share Posted February 24, 2009 Probably missed checking some box, or answering some question, would be my guess. Quote Link to comment Share on other sites More sharing options...
David1980 Posted February 24, 2009 Report Share Posted February 24, 2009 By making the election to claim foreign income taxes paid without filing Form 1116, the foreign tax credit limitations do not apply. Those are lines 14-20 of Form 1116. So if it's being limited by something in there the election to not complete Form 1116 can create a better tax benefit. Quote Link to comment Share on other sites More sharing options...
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