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We have found an error in the Foreign Tax credit calculations (2023)
We are using the Desktop Premier version for Macintosh.
To calculate Foreign tax credits we have entered foreign source income and qualified deductions (worksheet line 1h). The program then calculates a qualified dividends adjustment (line 1k) and a net qualified dividends figure (line 1l).
The IRS instructions for Form 1116 say to use 0.5405 as the qualified dividends adjustment (https://www.irs.gov/pub/irs-pdf/i1116.pdf Page 10). However, the program is apparently using 0.5136.
March 30, 2024
6:51 PM