topic Re: Form 1116 Always Needs Review in Get your taxes done using TurboTax

Form 1116 Always Needs Review

Mark S8 — Sun, 21 Mar 2021 18:48:50 GMT

Every year I get an item that needs reviews on my federal taxes on Form 1116. It asks me for my “Adjusted basis of total investments” (4-b(1)c) and “Adjusted basis of investment assets generating foreign income” (4-b(1)b). I’ve never been confident in the answer I get from customer service. What information goes into these line items? Why doesn't TurboTax Premier ask for this information when I initially provide the data regarding my foreign tax credit?

Does it want to know my basis in the ETFs (where my foreign tax credit comes from) and my entire portfolio? This information would be laborious to calculate.

Re: Form 1116 Always Needs Review

rogge1722 — Sun, 21 Mar 2021 23:38:30 GMT

The screenshot data on the f1116 worksheet is from the example in the f1116 instructions on p16. (a) is from Schedule A; (b) and (c) are user input from the example. (d) and the final amount are calculated by TT and sent to f1116 line 4b.

Re: Form 1116 Always Needs Review

Mark S8 — Mon, 22 Mar 2021 00:16:03 GMT

But where do I get my inputs for (b) and (c)?

Re: Form 1116 Always Needs Review

rogge1722 — Mon, 22 Mar 2021 01:02:50 GMT

The inputs are derived from your portfolio using the example as a guide.