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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (5238)	7/28/2010 7:16:33 PM
From: Steve Felix	Read Replies (1) \| Respond to of 34328

Thanks Paul. Looks like you have it right to me. Starts bottom left of page 47: irs.gov

To: Paul Senior who wrote (5238)	7/29/2010 12:07:23 AM
From: wilywilly	Read Replies (1) \| Respond to of 34328

In my experience, TurboTax can handle the 1116 OK. But once you're over the $600 limit you don't get much of the tax back as a credit. I think the form takes into consideration the tax rate you're paying on your US (or total?) income, and limits the foreign tax to the same percentage of your foreign income. I may be wrong about the details, but I was surprised at how little credit I could claim. My mother's trust tax return was always prepared by a CPA, and I noticed it got about the same results - very little of the credit was captured. The excess credit isn't lost, it gets carried forward to future years, but unless your situation ever changes, I doubt you will ever get the full credit.