Thank you, Mr. Dawn for your help.  I will try on Turbo and then give my comments.

• Another pending issue is: where do I enter additional foreign tax credit for additional taxes paid in 2020; when income on sale of flat and foreign tax credit was filed in 2019.  If I enter this additional foreign tax credit on form 1116 without any income from sale of flat in 2020, I get nothing because 1116 uses ratios. Is there any other place where I can enter additional tax paid in foreign income? 

@geauga You could Amend your 2019 return to add the additional Foreign Tax paid on the 2019 income. 

My currency trading is a loss for 2022.

Example, I entered "IRC 988" for description,  "-$50,000" for taxpayer amount under Misc. Income; other reported income section

My  question is, does this apply for Federal and certain State, such as California ? because under the State of California reporting, Misc.; Other Adjustment to Income; do I enter the same for Federal the -$50,000 loss?

Per our Expert DawnC, Forex gains and losses are reported on your tax return as Other Income.  Report a loss as a negative number.

To report your Forex loss, please follow these steps:

• Click on Federal Taxes (left menu) then on Wages & Income/Income & Expenses (up top)
• Under All Income, locate the Less Common Income section
• Click Show more and click Start next to Miscellaneous Income, 1099-A, 1099-C at the bottom
• Click Start next to Other Reportable Income
• Describe the amount as Section 988 Forex gain or loss (enter a negative number for a loss)

Hi,

How do I carry this over to the NIIT form? Basically have around $100K in 'interest' from foreign government bonds, but it is offset by approx $100K in that country's currency depreciating. So in USD terms made ~$0 round-trip (USD->forex->bond->forex->USD).

Even if I add the loss as negative income, TurboTax wants me to pay ~$3k in NIIT. But as far as I can tell, treasury regulations clearly say "... foreign currency gain or loss that otherwise is not subject to the Self- Employment Contribution Act is appropriately treated as net investment income. ". So my understanding is I should be able to adjust the NIIT to deduct the loss.