topic Form 1116 Foreign tax credit does not seem to be calculating correctly in Deductions & credits

Form 1116 Foreign tax credit does not seem to be calculating correctly

ragreene1 — Mon, 03 Mar 2025 22:54:08 GMT

I have foreign income that is coming to me from a 1099-DIV, and a Trust K-1 (which is also sourced from its own 1099-DIV). These are both passive category income. The foreign tax paid on the 1099-DIV is $55 on $504 of income. The foreign tax paid on the Trust K-1 is $27 on $110 of income. Total tax is $82 and income is $614. Turbotax is combining them on one from 1116, which it says I do not need to file (which I believe is correct). On line 24, it shows $82, which I think is correct, but then on line 35, which transfers to the 1040 it shows $137, which is more than the tax that was paid. It is almost like it is doubling the $55 from the 1099-DIV. How do I fix this?

If I force the Form 1116 thru the Info Wks, then it calculates using 2-1116 forms and calculates the total credit as $82.

Re: Form 1116 Foreign tax credit does not seem to be calculating correctly

SusanY1 — Sun, 09 Mar 2025 23:02:36 GMT

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

If possible, please post a screenshot of the token to avoid having the number truncated by automated privacy filters.

Re: Form 1116 Foreign tax credit does not seem to be calculating correctly

ragreene1 — Mon, 10 Mar 2025 05:03:17 GMT

Re: Form 1116 Foreign tax credit does not seem to be calculating correctly

DaveF1006 — Thu, 13 Mar 2025 23:32:28 GMT

I've reviewed your file. ‌I would suggest deleting both Form 1116 ‌ since the foreign tax amount is below the $300 threshold for reporting the Foreign Tax Credit..‌ You don't need Form 1116

Once deleted, I show $82 reflected in Schedule 3 line 1 and Lines 20-21 on the 1040. Try this to see if this works and reach back to us if you have further issues.