First, address the error with regard to the statement "the value of the fgn dividends must be etc."
Open a new spreadsheet.
Column A is used for both qualified and unqualified dividends, aka. “Ordinary dividends”.
Column B is used for qualified dividends only.
In cell A1, insert the worldwide ordinary dividends. This is the amount in the 1099-div, box 1a.
In cell A2, insert the foreign ordinary dividends. This amount is derived from the broker’s supplemental info.
In cell A3, subtract A2 from A1. The result is the U.S sourced ordinary dividends.
In cell B1, insert the worldwide qualified dividends. This is the amount in the 1099-div box 1b.
In cell B2, insert the foreign qualified dividends. This amount is derived from the broker’s supplemental info.
In cell B3, subtract B2 from B1. The result is the U.S. sourced qualified dividends.
Each cell in column A must be equal to or greater than the corresponding cell in column B. If that is not the case then there is an error. Recheck all entries.
Next address the adjustment issue.
When you go thru the interview, the screen with the header "Foreign-Source Income" is asking for the amount from cell A2, Later a screen with the header "Any foreign source qualified dividends or long term capital gains?" Enter the amount form cell B2.
If the amount is 20k or more, TT will make the adjustment for you with the built in algorithm The amount retained is forwarded to f1116 line 1a.
