I am electing Foreign Tax Credit for foreign taxes paid. Single foreign income source is international mutual fund dividend distribution. Foreign Income - $29,246. QDI Eligible Foreign Income - $21,082. Foreign Tax Paid - $2,500.
TT Premiere interview and my inputs follow:
Country - RIC
Foreign Source Income - $29,246
Simplified Method - Yes
No Other Income or Expenses - Yes
Foreign Tax Paid - 13/31/2020
Carryover - No
After reading IRS Instructions for Form 1116, I conclude I am required to adjust my foreign income for Qualified Dividends because my foreign income exceeds $20,000 which means I don't meet one of the two Adjustment Exception requirements. This also seems to be supported by the TT HELP information provided for TT "Foreign Tax Computation Worksheet" when viewed in the FORMS display.
TT never asks for Qualified Dividend amount.
Does my Foreign Income amount need to be adjusted?
Note TT Help for the Comp Worksheet says:
"Foreign Qualified Dividends and/or Capital Gains Adjustment Smart Worksheet:
This box will automatically be checked if you are required to make adjustments for foreign qualified dividends or capital gains, and you do not meet the Adjustment Exceptions. Even if you meet the Adjustment Exceptions, you may elect to make the adjustments by checking this box. (This is not recommended.) This check box will disable the adjustment exception calculation in the Line 18 Smart Worksheet at the bottom of page 3 of this worksheet."
The "Make Adjustments" box is not checked. Should I switch to Forms View and check this box manually and then input my Qualified Dividend Amount or should I accept the Foreign Tax Credit is being computed correctly when simply answering the interview questions?
