Foreign qualified dividends and capital gains are adjusted if the following holds:
- You have foreign qualifying dividends or long-term capital gains totaling more that $20,000, OR
- Your total income exceeds the following amount for your filing status:
- Married Filing Joint or Qualifying Widow(er): $223,050
- Single: $183,250
- Head of Household: $203,150
- Married Filing Separate: $111,525
These adjustments had to be done manually outside TT before 2016.
On the form 1116 worksheet, select any entry under the country column and right click. On the box that appears, click on “data source” and another box will appear with an explanation.
If you want to double check the accuracy, you can do the calculations manually. For form 1116 line 1a, the instructions start on page 6 of the form 1116 instructions. Also TT made adjustments on line 18. You can manually check that on page 21 of the instructions.
