Form 1116 error

Forum|Forum|3 years ago
April 7, 2023
2 replies
25 views

Hi,

I am having an issue with Form 1116 Question 1a: Gross income from sources within country shown
above and of the type checked above (see instructions):

I have correctly reported the amount of foreign Dividend Income from my 1099. However, on Form 1116a "Gross income" for Passive Income is reporting an amount much lower than that.

The final amount of the credit is being calculated correctly, but I am concerned that this amount is not pulling through correctly.

Any ideas why this would be incorrect?

Thanks.

TurboTax PLUS Online

rogge1722

Level 10

Bring up the form 1116 worksheet. Under Part 1-Taxable Income (Loss), if line 1m is less than 1f, then an adjustment was made on the foreign qualified dividends due to line 1h being 20k or more. Also and adjustment will be made if the income is high enough even though 1h is less than 20k.

AmyC

Level 15

Please follow these steps:

Open your return

Search for foreign tax credit

Select jump to foreign tax credit

Continue to the selection of countries

Continue

Select Report Income

Select the box for your broker

Continue

Enter Foreign -Source Income

Continue

If the income has been entered and the calculations are correct then you need to view the final form 1116. The worksheets are not a part of your tax return. Only the Form 1116 will go with your tax return so review it for accuracy.

To see your forms: