One way to verify that adjustments were made is to bring up the f1116 worksheet. Scroll down to the "Form 1116 Line 18 adjustment smart worksheet" box. If "C" is blank, then an adjustment was made.
Here is a copy of a hypothetical payer that would appear in the "data source". for windows.
_____________________________________________________________________________________
Form 1116 (COPY 1) : Line 18
Part III, line 18:
if this category of income is lump-sum distribution (box e), from the lump sum distributions smart worksheet:
Form 1116 (COPY 1) Line C
If this category of income is Section 901(j) (box c) this line will be blank.
If tax is calculated not using Schedule D Tax Worksheet or the Capital Gain Tax Worksheet or the Adjustment Exception applies, from:
1040 Wks AGI less deduction amt 588,000.
Otherwise, from Form 1040, line 10 reduced by the following amounts from either the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet (if used):
If tax is computed using the Schedule D Tax Worksheet:
- Sch D Tax Worksheet, line 40 multiplied by 0.2432
- Sch D Tax Worksheet, line 37 multiplied by 0.3243
- Sch D Tax Worksheet, line 31 multiplied by 0.4595
- Sch D Tax Worksheet, line 28 multiplied by 0.5946
- Sch D Tax Worksheet, line 20
Schedule D Tax Worksheet Line 40
Schedule D Tax Worksheet Line 37
Schedule D Tax Worksheet Line 31 162,200.
Schedule D Tax Worksheet Line 28 237,800.
Schedule D Tax Worksheet Line 20 0.
If tax is computed using the Qualified Dividends and Capital Gain Tax Worksheet:
- Qualified Dividends and Capital Gain Tax Worksheet, line 22 multiplied by .4949
- Qualified Dividends and Capital Gain Tax Worksheet, line 19 multiplied by .6212
- Qualified Dividends and Capital Gain Tax Worksheet, line 11
Qualified Dividend and Capital Gain Tax Line 22 162,200.
Qualified Dividend and Capital Gain Tax Line 19 237,800.
Qualified Dividend and Capital Gain Tax Line 11 0.
