There are times when foreign source qualified dividends/capital gains must be adjusted before entering on line 1a (gross foreign income). See fed instructions page 9 for details, if interested. In ca...
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There are times when foreign source qualified dividends/capital gains must be adjusted before entering on line 1a (gross foreign income). See fed instructions page 9 for details, if interested. In cases where the adjustment is made, TT uses the UNADJUSTED amount when calculating the mortgage amount for line 4a. That's wrong; it should use the ADJUSTED amount. Here is the worksheet from page 18 of the instructions for calculating line 4a. In my case, unadjusted gross foreign income is ~$16,000. Adjusted gross foreign income is ~$7,000. TT correctly calculates and puts $7,000 on line 1a of Form 1116. But it uses $16,000 instead of $7,000 on line 1 of the worksheet above. That results in a larger amount being calculated for line 4a, which ultimately results in a smaller max tax credit being calculated on line 21. As a result, I am not able to take the full FTC that I am entitiled to.