Get your taxes done using TurboTax

With regard to question 1: From TT’s on-demand guidance:

Form 1116 (COPY 1) : Line 3ea

Calculated Gross income from all sources:
This is total income before deductions and is the sum of:

Form 1040, lines 1, 2b, 3b, 4b, 5b and 6b plus
Schedule 1 (Form 1040), line 1 plus
Schedule 1 (Form 1040), line 2a plus
Schedule C, line 7 (all copies) plus
All gains reported on Schedule D minus Schedule D, line 11, Subtotal Line A(Form 4797, Gain from Part I) plus
All gains reported on Form 4797 plus
Schedule E, line 3 total plus line 4 total plus
Schedule K-1 Worksheet - Estates and Trusts, Box 14 Code B : Foreign Tax Information section, line 7 (if it has a value); otherwise income reported in Part III lines 5, 6, 7 and 8 plus
Schedule K-3 - Partnerships Line B - Gross income from all sources
Schedule K-1 - Partnership Additional Information page 1, Box 11 section,Code A, line 1 (if positive) and line 3 and line 4 and Code I, line 5
Schedule K-3 - S Corporations Line B - Gross income from all sources
Schedule K-1 - S Corporation Additional Information page 1, Box 10 section, Code A, line 1 (if positive) and line 3 and line 4 and Code H, line 5
Schedule F, line 11 (all copies) plus
Form 4835, line 7 ( all copies) plus
Schedule 1 (Form 1040), line 7 plus
All positive income amounts on the Other Income Statement.

 

With regard to question 2: From TT’s on-demand guidance.

Form 1116 (COPY 1) -- Foreign Tax Credit Comp Wks : Adjusted QDI income

Line 1l, columns A, B and C:


If the Foreign Qualified Dividends and/or Capital Gains Adjustment Smart Worksheet checkbox is not checked, from Line 1f.

Otherwise, from Line 1g, plus the result of one of the following calculations, depending on whether the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet is used:

If Schedule D Tax Worksheet is used.
 - Line 1j multiplied by the Sch D Tax Worksheet, line 40, divided by the Sch D Tax Worksheet, line 11a. The result is multiplied by 0.7568.
PLUS
 - Line 1j multiplied by the Sch D Tax Worksheet, line 11a minus line 40, divided by the Sch D Tax Worksheet, line 11a.
PLUS
 - Line 1i multiplied by the Sch D Tax Worksheet, line 37, divided by the Sch D Tax Worksheet, line 11b. The result is multiplied by 0.6757.
PLUS
 - Line 1i multiplied by the Sch D Tax Worksheet, line 11b minus line 37, divided by the Sch D Tax Worksheet, line 11b.
PLUS
 - Line 1h minus line 1i minus line 1j, with the result multiplied by the following ratio:
 -- Sch D Tax Worksheet, line 31, multiplied by 0.5405, plus
 -- Sch D Tax Worksheet, line 28, multiplied by 0.4054.
 -- The sum of the above two lines is divided by the sum of Sch D Tax Worksheet, lines 20, 28, and 31. The result is the ratio to be used. If the sum of lines 20, 28, and 31 is 0, the ratio is defined as 1.
NOTE: With the exception of the last line for how to calculate the ratio, the result of any calculation which has a 0 as a denominator is defined as 0.

If Qualified Dividends and Capital Gain Tax Worksheet is used.
 - Line 1h multiplied by the following ratio:
 -- Qualified Dividend/Capital Gain Wksht, line 20, multiplied by 0.5405, plus
 -- Qualified Dividend/Capital Gain Wksht, line 17, multiplied by 0.4054.
 -- The sum of the above two lines is divided by the sum of the Qualified Dividend/Capital Gain Wksht, lines 9, 17, and 20. The result is the ratio to be used. If the sum of lines 9, 17, and 20 is 0, the ratio is defined as 1.

NOTE: Calculated result may be adjusted by up to $2 to allow columns A, B, and C to add up to the Total column after accounting for rounding.

 

With regard to question  3:

From Pub 514 :

 

“ You cannot claim a credit for unused foreign taxes in a year to which you carry them unless you also claim a credit  for foreign taxes actually paid or accrued in that year.”

 

Or as  Drake Software put it , "Form 1116 - You cannot have current year foreign income on Part I, line 1a, without current year foreign tax paid in Part II or vice versa".

 

 

 

View solution in original post