Searched other form 116 posts but cannot find an answer...
I have passive income from foreign dividend payments (all shown on 1099-DIVs), on which I have paid a total of $799 in foreign taxes (RIC & Germany).
On Form 1116, how is TT calculating the value for line 3a ("certain" itemized deductions or standard deduction) ?
I do itemize my taxes and on 1116-line 3a TT enters $2,973 - where does this come from ?
If I compare with last 4 years of TT returns, TT has always previously entered a standard figure of $10,000 on form 1116 line 3a - why is this year different from every other year ? In prev years, foreign dividend income was about the same, foreign taxes paid was about the same, Itemized deductions on 1040 schedule A were also similar.
I have read every article I can find on "IRS Form 1116", but can find no real explanation of what IRS mean by "CERTAIN itemized deductions"...
Can anyone help, as I am going nuts... 🙂
Thanks
Mike
