why when calculating a foreign tax credit does turbo tax miscalculate my gross income in the foreign tax credit computation worksheet (inflates my gross income)?

Forum|Forum|2 months ago
April 13, 2026
1 reply
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this is in the Gross Income Adjustment section of the interview it miscalculates my gross income from all sources

TurboTax Online

MaryK4

Level 15

Your gross income on the Foreign Tax Credit Computation Worksheet follows the IRS definition for "Gross Income from All Sources". The inflation usually happens because the calculation adds back losses and excludes certain deductions that normally reduce your total income on other parts of your return.

Why the number may be higher than your AGI

Gross income includes total capital and ordinary gains before subtracting any capital or ordinary losses. If you had large stock sales with offsetting losses, TurboTax will show the full gain amount here without the "cushion" of the losses.
If you have a business, the calculation uses gross receipts (minus cost of goods sold) rather than net profit.
If you claimed the Foreign Earned Income Exclusion, that excluded income is added back into your "Gross Income from All Sources" for this calculation.
Every single positive line item from your schedules (like Schedule D or E) is summed up, often ignoring the negative entries that typically balance them out.

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