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Deductions & credits
Dear @MarilynG1 ,
My question is about foreign income amounts reported on Form 2555 that flow into Form 1116. Your screencap shows blank entries for columns A & B in the "Income Excluded on Form 2555 Smart Worksheet" box. What happens once you fill those in by selecting “Taxpayer’s” in both columns A & B (assuming you have unexcluded Foreign Earned Income reported on Form 2555)?
Note that “Unlinking Form 2555 [from Form 1116 via the Smart Worksheet discussed above] entirely is also not a solution because TurboTax provides no other mechanism for adding back the excluded FEI on [Form 1116] Line 3d. This occurs in (at least) TurboTax versions 2023, 2024, and 2025” (quoted from my original question).
There appears no mechanism (except manual override of Form 1116 Lines 1a and 3d) in TurboTax to correctly disaggregate income between countries for income reported on Form 2555.