I've dealt with this exact issue before and it's frustrating! The negative foreign tax credit is definitely a software glitch, not how it should appear. Here's what worked for me: First, make sure you're entering the dividend information in the correct order. Enter the GROSS dividend amount (the total before any foreign tax was withheld) as your dividend income. Then, separately, enter the $142 as foreign tax paid - but make sure it's a positive number. If H&R Block keeps making it negative automatically, try this: Go to the dividend section first and verify the gross dividend amount is correct. Then find the foreign tax section and manually clear out any negative values. Re-enter just the $142 as a positive amount in the "foreign tax paid" field. The key thing to remember is that you're claiming a credit for tax that was already paid on your behalf to a foreign government. This reduces your US tax liability, so it should never be negative. If the software won't accept it, there might be an issue with how your broker reported it on the 1099-DIV form. Don't skip claiming this credit - $142 is real money that should reduce your tax bill!

I'm having a very similar issue but with FreeTaxUSA software instead of H&R Block. My foreign tax credit is showing up as negative too, and it's blocking my e-file submission. Reading through all these responses, it sounds like this might be a broader issue across different tax software platforms when handling foreign dividends. I have about $85 in foreign tax withheld from some Vanguard international index funds. Has anyone tried the approach of completely deleting all the dividend entries and then re-entering them from scratch? I'm wondering if starting fresh might avoid whatever input sequence is causing the negative values to appear in the first place. Before I spend money on any of these third-party services, I want to try every possible DIY fix. Also, for those who successfully resolved this - did you notice any difference in your final tax liability once the foreign tax credit was properly applied? I'm curious if this $85 credit will actually make a meaningful difference in what I owe or my refund amount.

Did your son have a job where he received a W-2? Because if someone else filed using his SSN, they probably made up income that doesn't match what's reported to the IRS from his actual employers. This mismatch actually helps his case because the IRS can verify the legitimate income sources.

I'm so sorry this happened to your son! Identity theft during someone's first tax filing experience is incredibly stressful. One thing that might help ease your mind - the IRS is actually pretty experienced with these cases since tax-related identity theft has become more common. Since you mentioned you haven't filed your taxes yet and still claim him as a dependent, you should be fine to proceed with your filing. Just make sure to include him as a dependent as you normally would. The identity theft issue is with his individual return, not your family's tax situation. Also, make sure your son keeps detailed records of every interaction with the IRS - dates, times, names of representatives he speaks with, and case numbers. This documentation trail will be invaluable if there are any delays or complications. The IRS agents handling identity theft cases are generally very helpful once you get through to them. Hang in there - this will get resolved, and your son will eventually receive his refund. It's just going to take some patience and persistence!

Quick question - does anyone know if you'll get all the refunds as separate checks? Or do they combine them somehow? I'm trying to figure out how to track everything if I file amendments for multiple years.

Just wanted to add some important details about the deadlines that weren't mentioned - you generally have 3 years from the original due date of the return (or the date you filed if later) to file an amended return to claim a refund. For your 2020 return, that deadline would be April 15, 2024 (or October 15, 2024 if you filed an extension). Since we're now in 2025, you might have missed the window for 2020 unless there are special circumstances. I'd definitely check with a tax professional or call the IRS to confirm whether you can still amend that 2020 return. The 2021 and 2022 returns should still be within the amendment period though. Also, don't forget that if you do get refunds from these amended returns, you might owe tax on any state tax refund you received in subsequent years (if you itemized deductions). It's a small detail but worth keeping in mind!

Just to add another perspective for anyone reading this thread - I work in a university registrar's office and see these questions all the time. The key thing to remember is that "full-time student" status for tax purposes is much more flexible than people think. The IRS specifically designed the 5-month rule to accommodate students in non-traditional programs like co-ops, internships, study abroad, and accelerated degrees. As long as your school officially enrolled you as full-time for any part of 5 calendar months during the tax year, you qualify - regardless of whether those months were consecutive or whether you were taking traditional classroom courses. For situations like yours with school-sponsored internships, most universities maintain your full-time enrollment status during the internship period since it's a degree requirement. This is exactly why you were charged full tuition. The IRS recognizes this and counts it toward your student status. Your spring semester alone (January-May) already gets you to the 5-month threshold, so you're definitely in the clear for claiming full-time student benefits on your taxes!

One thing I'd add that might help future readers - if you're ever unsure about your enrollment status for a particular semester, you can usually get an official enrollment verification letter from your school's registrar for free. Most schools can generate these online or by email request, and they'll clearly state whether you were enrolled full-time, part-time, or not enrolled for specific date ranges. This is especially useful for situations like internships, study abroad programs, or co-op semesters where your status might not be obvious from just looking at a transcript. Having that official documentation makes tax filing much more straightforward and gives you confidence that you're answering the student status questions correctly. Plus, if you ever need to provide documentation to the IRS later, you'll have exactly what they're looking for!

As a newer preparer myself, this entire discussion has been incredibly enlightening! I came in thinking the same way as Eduardo - if there's an exemption, why wouldn't you use it to save time and reduce costs? But after reading everyone's insights, I'm completely convinced that completing these "optional" schedules is actually the professional standard, not the exception. The reasons are compelling: 1. **Future-proofing**: Partnerships often grow beyond exemption thresholds 2. **Client education**: Partners gain valuable insights into their business financials 3. **Practical needs**: Loan applications, partner disputes, business planning all benefit from complete information 4. **Examination preparedness**: Having documentation ready for IRS requests 5. **Minimal additional effort**: Most tax software auto-generates these from existing data What strikes me most is how this exemplifies the difference between minimum compliance and comprehensive professional service. We're not just filing returns - we're providing strategic business support that anticipates future needs. I'm definitely changing my approach going forward. The small amount of additional prep time is clearly outweighed by the value it provides to clients and the professional credibility it establishes. Plus, as several people noted, it's often more work to remove auto-generated schedules than to include them! Thanks to everyone who shared their experience - this kind of practical wisdom is exactly what newer practitioners need to develop sound professional judgment.

This has been such an educational thread! As someone who's been working in tax for about 5 years but mostly with individual returns, I'm just starting to take on more partnership clients and this discussion perfectly addresses the confusion I've been feeling. The unanimous consensus here really surprised me - I expected more debate about whether to use the exemption or not. But the practical reasoning is so compelling. What I find most valuable is how everyone emphasized that tax preparation is about serving the client's broader business needs, not just meeting IRS minimums. The point about tax software auto-generating these schedules is particularly relevant for me. I've been manually removing them thinking I was being efficient, but now I realize I was actually creating more work for myself while providing less value to my clients. One question I have: for partnerships that are clearly going to remain small (like two-person professional practices), do you still recommend completing all schedules? Or are there specific situations where the exemption might actually be the better choice? I'm also wondering about how to explain this approach to cost-conscious clients who might question why they're paying for "optional" work. Any suggestions for how to frame this conversation? Thanks again to everyone - this thread should be required reading for anyone new to partnership returns!