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April 11, 2025 Hello to All of You! I fully agree with Trekker1 regarding Form 1116, i.e., "One reason for not wanting the credit is Form 1116 is very complicated and it may not be worth the trouble." I do NOT see any DETRIMENT (LOSS) to the IRS if taxpayers decide voluntarily to LIMIT their Foreign Tax Credit to either $ 300 (for single filers) or $ 600 (for married filers) when in fact they paid MORE inForeign Taxes.  Reflecting the $ 300 (or $ 600) on Schedule 3, Line 1, and ultimately reflecting it on Form 1040, line 20 is SO EASY to accomplish when compared to filling out Form 1116.  In addition, the IRS has NOT been HARMED in any manner from such taxpayer action.  Finally, I think that the IRS should rethink its position and allow taxpayers themselves to decide which option to choose, EVEN IF the taxpayer has more than $ 300 (or $ 600) in Foreign Taxes but is willing to limit the tax credit to $ 300 (or $ 600)..  Does anyone know of any instance when the IRS has raised this issue with a taxpayer who had more than $ 300 in Foreign Taxes but decided NOT to use Form 1116 and instead used Schedule 3, Line 1 and ultimately Form 1040, line 20 up to the $ 300 (or $ 600 amount)?  Thank you in advance for your response to my question above. Respectfully, OurTaxSystemIsTooComplicated!

This is a similar problem to what others have reported in previous years, but it still doesn't seem to be fixed.  TT is incorrectly zeroing out my mortgage interest deduction for a refinanced pre-2017 mortgage even though I qualify for a (limited) mortgage interest deduction.   After inputting my 1098 information, I affirmatively answer the question "Yes, this loan is a HELOC or this loan is a refinance of a previous loan" because I refinanced my pre-2017 mortgage in 2020.  I then negatively answer the question "Did you use your loan for anything besides paying off the existing loan?" because this was a straight refi with no cash out.  TT then tells me "Congrats, you get a tax break" and I see my tax owed go down by several thousand dollars.  TT then ask me the purchase date of the home, which I enter (2015), followed by an affirmative response to indicate that the original debt occurred before 2017 and the debt has not increased since (i.e., no cash out refi).  At that point, the tax owed shoots back up (the deduction goes to zero) and TT asks me what the loan balance was on 1/1/25, which I enter.  This amount exceeds (by a relatively small margin) the $1,000,000/$500,000 cap that applies to pre-2017 mortgages.  TT then tells me "Your mortgage interest is being limited," which I expect because I know that my deduction has to be reduced because the loan balance exceeds the cap.  In the past I have just done the average balance calculations myself, and I usually end up being able to deduct something like 90% of what I otherwise would if my mortgage balance didn't exceed the cap.   But TT is instead COMPLETELY ZEROING OUT MY DEDUCTION.  Why??  Going into the form view, and looking at the Home Mortgage Interest Worksheet, if I change the box for "Is this loan the result of refinancing a previous loan or is this loan a HELOC" from "Yes" to "No," it immediately restores my mortgage interest deduction.  But that shouldn't matter!  My refi was a straight no-cash out refinance of a pre-2017 mortgage, so it qualifies for a (limited) deduction.   I have tried deleting and reentering my 1098 info several times (along with closing and restarting) to no avail.

Turbo tax is asking me to enter the value of my Roth as of 12/31/24 and include any contributions made in 2025 that were for 2024.   Do I simply add the 2024 contribution amount made in 2025 to the account value as of 12/31/24?  When I did this, the sum is actually more than the current account value due to fluctuations from the investments within it.   wasn’t sure if I do simple addition to obtain this value or if I state the account value as of 4/2025.