Last year, TurboTax reported my nonqualified deferred compensation on 1040, line 1 AND included it in the “Gross Income from All Sources” calculation on Form 1116. This year, TurboTax is reporting my deferred compensation on Schedule 1, line 8t and is NOT including it in the “Gross Income from All Sources” calculation on Form 1116. As a result, a significant portion of my foreign tax credit is being carried forward rather than being applied to the current year.
Shouldn’t nonqualified deferred compensation be included in the “Gross Income from All Sources Smart Worksheet” calculation on Form 1116?
