Form 1116 Credit Amount (Line 35) is Double the calculated amount (Line 24)

[cinstr]

As of 2/24/21, my Form 1116 Credit Amount (Line 35) is double the calculated amount on Line 24.  Per the form instructions the Line 24 amount should be carried over to Line 33 and flow through to Line 35, but it is not (Line 33 is blank and Line 35 is double the amount calculated in in 24).  Everything entered on my 1116 worksheet and the rest of Form  1116 appears to be correct and is consistent with how foreign dividends were entered into TurboTax last year.  I had no foreign tax credit carryover from last or previous years.  I do show an AMT foreign tax credit carryover from last year, per the Form 1116 it is not utilized for the purpose of the foreign tax credit.  If I override Line 35 with the correct Line 24 amount I get an error that I will not be able to file electronically.  I am unable to determine if I am doing something wrong or if there is some error here.

[rogge1722]

In Forms Mode, bring up f1116.  Put the pointer on line 35 and right click.  Then click on "data source".  It might help to locate where is excess amount is coming from.  You can do the same for line 33 and possibly deduce where and why these anomalies are occurring. 

[cinstr]

Thanks for the suggestion.  I had tried that previously without helping to resolve my issue. When I right click and select Data Source:

• On Line 33, the Data Source description is for Line 31.  Not what I was expecting.
• On Line 35, the Data Source description is for Line 33.  Not what I was expecting. 

I reviewed the Data Source info for Line 33 (found under Line 35) and the only thing remarkable is that TT is saying I should not file the Form 1116 with my return.  In fact it is marked at lest twice on the form.

The Form 1116 on-line Tax Guide does not have an explanation for Lines 31 and 33.

Not sure if it makes any difference, but I have an incomplete Schedule K (info not due to me until next month).  This is a domestic partnership, so I don't think that would be relevant to Form 1116.  

[rogge1722]

TT for TY 2020 did not update the “data source”.  For TY2020, form 1116 added lines 23 and 24 at the end of Part3.

Thus in part 4, lines 25 thru 35 in TY2020 are lines 23 thru 33 for TY2019.  The info is the same except for references to line numbers.

[cinstr]

I reviewed as you pointed out the Data Source and adjusted for the fact that TT has not updated the Data Source and Tax Guidance for Form 1116.  I also compared the embedded instructions in the Form for both 2019 and the current 2020. 

• The current 2020 Form 1116 Line 33 is NOT carrying over the amount from Line 24 (it is blank) in the case that " If only one category of income is used, this is the amount from line 22." ( The quoted text is verbatim from the Data Source for 2020 Form Line 33.  For 2020, this Data Source should read line 24 as per the instructions for Line 24. )
•    The current 2020 Form 1116 Line 35 is NOT calculating the amount of the credit per the Data Source instructions or the embedded instructions on Line 35. 

How do I get Intuit to review and address the issues?

[cinstr]

As of the 2/27/21 TT20 release the issues I mentioned above have not been corrected.

[cinstr · Accepted solution]

Update: Not sure why this corrected the issue.  All my foreign income and taxes paid came from Interest & Dividend accounts.  I deleted the Form 1116 Worksheet that had been generated automatically by TT and the calculation issue was resolved on Line 35 of Form 1116.

[Tirlough]

TT would not allow me to efile federal return, displaying an error message that the worksheet for Form 1116, line 33 "should be blank". No way to correct the error, so I just deleted both copies of the workseet and that seemed to do the trick.  The federal 1040 efiled without further incident.

[john5408]

It is now 2025 and still TT is still erroneously doubling my foreign tax credit. After six hours of frustration, I bailed and went to a real CPA. Form 1116 is required.