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posted Feb 11, 2024 7:05:39 AM

Form 1116 and proper sequence for each copy

In past years foreign credits from General income (such as non Gov't pension income earned in another country with non resident tax deducted) is tagged as "General" income  as is Copy 1 of form 1116. If you have a income, credit associated with a "Lump-sum payment" that becomes form 1116 Copy 2. Only then does "Passive" income from dividends, interest, etc, related to foreign income and tax deducted can be Copy # 3 of form 1116.  

 

In 2023 Turbo Tax it states I should first report Dividends, Interest and Schedule K-1 before entering the foreign tax for General and Lump-Sum income. Has Turbo tax been updated so it knows the proper order for the various Copies of form 1116? If the proper order is not maintained you got a filing error in prior years.

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