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Deductions & credits
Sorry, rogge1722, but you don't have it quite right. On page 23 of the IRS's Form 1116 instructions it says, "Complete Part IV on only one Form 1116 (the one with the largest amount entered on line 24) to summarize the credits you figured on all of your Forms 1116." TT completes Part IV on COPY 1 of Form 1116, which means that the forms need to be ordered with the largest CREDIT, not (as you said) "the largest tax paid." I just had my 2020 tax returns rejected by the IRS when I attempted to submit them electronically. In my case, I paid less Dutch taxes on my passive than on my re-sourced income, but the credit for my passive category income was larger due to a carryover from 2019.
March 6, 2021
10:14 AM