Hi. Thanks for your reply again. To be clear, I am filing 2022 (I know it's late but for health reasons I was out for much of last year). I am using the 2022 desktop version of Turbotax.
If I compare the Form 1116 from my 2021 tax return to the one I am trying to complete, it is clear the 2022 software is not picking up items that it should be. 1a (Gross Income from sources within the country shown) shows zero. I can see that it is trying to pull a number from Form 2555 as it says "From Form 2555". As I said in my previous post. I zeroed out that number because if I do not, it double counts the income. I may also have mentioned before that my 2021 filing (also done with Turbotax but online) has no Form 2555.
Somehow the online version (used in 2021) allowed you to explain that 100% of US Wages and Income was Foreign Sourced Income. You can see this in the adjustment in Section 2 of the Form 1116 i.e. 2f where you divide Gross Foreign Source Income by Gross Income from all sources. In 2021, that number was 1 (or 100%) for me. With this 2022 desktop software, 2d (Gross Foreign Source Income) is not being picked up. There is no place in the interview for Form 1116 where you can enter this. There is no place on the Wages and Income section where you can say wages entered are all Foreign Source Income. The software wants to FORCE you to declare it in the Less Common Income: Foreign Earned Income and Exclusion section. That would be OK if you can do two things after that: (1) explain that the income you are declaring is the same as that you have declared as US Wages NOT in addition to it, (2) that you do not want to take the FEIE and instead you want the tax credit. It will NOT let you do (1). It will ask you if you want to exclude the Foreign Earned Income, if you say no, it does NOT solve the double counting of income issue.
Because tax is late, there is no option to use the online version! I may have to do this manually and try to get a refund somehow.
As I said, at this rate I will be headed for the looney asylum.....am going crazy here.
