My question is, what value goes in line 1a of Form 1116 when it is part of a trust return (using form 1041)
For individual returns (Form 1040) this is well documented in the 2024 Form 1116 instructions page 9 under the heading "Qualified Dividends and Capital Gain Tax Worksheet (Individuals)," which includes clear instructions for determining the "Adjustment exception" which appears under the text, "You qualify for the adjustment exception if you meet both of the following requirements…."
Unfortunately, for trusts (Form 1041), the instructions for the Adjustment Exception are not clear (to me).
Specifically, my questions are:
- What is the adjustment exception for line 1a on Form 1116 with a Form 1041, and
- How are the values of foreign qualified dividends reduced for line 1a on Form 1116 with a Form 1041?
Thank you.
