TurboTax Deluxe Desktop 2025 (Windows)
WinPerRelease: 025.000.0284
TurboTax Deluxe Desktop 2025 incorrectly allows a negative value on Form 1116 line 18. Per IRS 2025 instructions, when using the Line 18 Adjustment Exception, line 18 must equal Form 1040 taxable income (line 15), but not less than zero. TurboTax instead carries the negative taxable income directly to line 18.
I'm a foreign resident, and my return with FEIE (Form 2555) has negative taxable income.
I have some foreign interest on which I paid foreign tax.
After entering info for foreign tax credit requiring Form 1116 (passive category), line 18 gets generated with an amount equal to the standard deduction subtracted from AGI, which is a negative number.
The IRS instructions state that this should not be less than zero.
I have no schedule 1A.
I qualify for Line 18 Adjustment Exception.
