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Deductions & credits
Folks - My federal return handles the foreign tax credit fine, but it appears within line 18d on form 1040/1040 SR. That's AFTER the tax is computed (and long after federal AGI , Form 1040 line 8b, is computed).
My state, Virginia (and I presume most other states), begins its tax calculations with federal AGI and nowhere do I see that it goes down the 1040 to look for the foreign tax credit. Nor does TurboTax seem to do it by picking it off Form 1116.
So, for years, have I been overpaying my Virginia taxes in the amount of the foreign tax credit because of this quirk?
May 2, 2020
11:00 AM