We can only speculate... maybe they didn't receive it in time, or maybe you failed to properly fill out the form 1116. It's one of the most difficult forms to fill out properly (at least without tax software). It's irrelevant whether or not foreign taxes were paid by well-known mutual funds or ETFs. The form is trying to make sure you don't get credited back more foreign tax than the US tax you paid on the same income.I claimed in excess of the $300 foreign tax credit but forgot to complete form 1116 when I submitted my timely filed return. The IRS sent me a letter saying form 1116 was missing. So I filled it out to the best of my ability and submitted it on their special website, along with my 1099-DIVs clearly showing the foreign taxes paid. However, after checking the status of my refund, it appears they have disallowed the foreign tax credit completely, reducing my expected refund by the amount of the foreign tax credit claimed. Why might this have happened? Still waiting to receive their explanation. I'm worried they simply didn't get the documents I submitted on their special website and think I didn't respond within the 20 days. Any alternative explanations would be deeply concerning (though this one is already concerning on its own). These are foreign taxes paid by well-known mutual funds/ETFs listed above. Perhaps I made a mistake on the form 1116? Is that enough to completely disallow the foreign taxes I clearly paid? The amount isn't worth hiring a tax specialist but this is still concerning...
Statistics: Posted by ivgrivchuck — Mon Feb 17, 2025 12:00 am — Replies 9 — Views 1415