Do you recommend a specific tax software to handle Form 1116 for foreign dividend withholding? Ideally looking for a good UI but primarily need it to actually support e-filing for this form.
As a US-based investor, my foreign holdings (specifically German equities via Interactive Brokers) are getting hit with 30% withholding. I want to claim the Foreign Tax Credit (FTC) to offset this, but I just discovered mid-filing that FreeTaxUSA does NOT support e-filing with Form 1116—it forces a paper return if you have anything beyond the simplest 1099-DIV entries (and doesn't handle carryover logic/Schedule B well).
Best tax software for form 1116 for foreign dividend withholding?
byu/Adorable_Type_2861 intax
Posted by Adorable_Type_2861
2 Comments
1116 not required if foreign taxes under $300 (600 on joint return).
I use the desktop version of Turbo Tax Premier for this situation.