Solved: Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?
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ogunquitguy
New Member

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

My 1099s indicate Section 1250 (25%) Cap Gains (Part 1-g-i) = $420 and Net Qual Div and LTCG (Part 1-g-L) = $401.

Entered these values but Smartcheck wants them to be the same.

I then tried $401 for both and then $420 for both, but each time this triggered a different Smartcheck error as the figures didn't match 1099s.

I'm trying to claim foreign tax credit attributable to sale of passive ETFs.

1 Best answer

Accepted Solutions
rogge1722
Level 8

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

This is the data for line 1i and 1l for hypothetical return if you had the right click feature.  

Line 1i, columns A, B and C:
If any of the income included on Line 1h for this country on this copy of the Foreign Tax Credit Worksheet is section 1250 recapture income (subject to a maximum 25% rate), enter the amount of such income here.

Form 1116 (COPY 1) -- Foreign Tax Credit Comp Wks : Adjusted QDI income
Line 1l, columns A, B and C:
If the Foreign Qualified Dividends and/or Capital Gains Adjustment Smart Worksheet checkbox is not checked, from Line 1f.

Otherwise, from Line 1g, plus the result of one of the following calculations, depending on whether the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet is used:

If Schedule D Tax Worksheet is used.
 - Line 1j multiplied by the Sch D Tax Worksheet, line 40, divided by the Sch D Tax Worksheet, line 11a. The result is multiplied by .7071.
PLUS
 - Line 1j multiplied by the Sch D Tax Worksheet, line 11a minus line 40, divided by the Sch D Tax Worksheet, line 11a.
PLUS
 - Line 1i multiplied by the Sch D Tax Worksheet, line 37, divided by the Sch D Tax Worksheet, line 11b. The result is multiplied by .6313.
PLUS
 - Line 1i multiplied by the Sch D Tax Worksheet, line 11b minus line 37, divided by the Sch D Tax Worksheet, line 11b.
PLUS
 - Line 1h minus line 1i minus line 1j, with the result multiplied by the following ratio:
 -- Sch D Tax Worksheet, line 31, multiplied by .5051, plus
 -- Sch D Tax Worksheet, line 28, multiplied by .3788.
 -- The sum of the above two lines is divided by the sum of Sch D Tax Worksheet, lines 20, 28, and 31. The result is the ratio to be used. If the sum of lines 20, 28, and 31 is 0, the ratio is defined as 1.
NOTE: With the exception of the last line for how to calculate the ratio, the result of any calculation which has a 0 as a denominator is defined as 0.

Schedule D Tax Worksheet Line 40

http:

Schedule D Tax Worksheet Line 11a

0.

Schedule D Tax Worksheet Line 37

http:

Schedule D Tax Worksheet Line 11b

http:

Schedule D Tax Worksheet Line 31

0.

Schedule D Tax Worksheet Line 28

65,000.

Schedule D Tax Worksheet Line 20

0.

If Qualified Dividends and Capital Gain Tax Worksheet is used.
 - Line 1h multiplied by the following ratio:
 -- Qualified Dividend/Capital Gain Wksht, line 22, multiplied by .5051, plus
 -- Qualified Dividend/Capital Gain Wksht, line 19, multiplied by .3788.
 -- The sum of the above two lines is divided by the sum of the Qualified Dividend/Capital Gain Wksht, lines 11, 19, and 22. The result is the ratio to be used. If the sum of lines 11, 19, and 22 is 0, the ratio is defined as 1.

Qualified Dividend and Capital Gain Tax Line 22

0.

Qualified Dividend and Capital Gain Tax Line 19

65,000.

Qualified Dividend and Capital Gain Tax Line 11

0.


NOTE: Calculated result may be adjusted by up to $2 to allow columns A, B, and C to add up to the Total column after accounting for rounding.

 


View solution in original post

5 Replies
rogge1722
Level 8

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

This is the data for line 1i and 1l for hypothetical return if you had the right click feature.  

Line 1i, columns A, B and C:
If any of the income included on Line 1h for this country on this copy of the Foreign Tax Credit Worksheet is section 1250 recapture income (subject to a maximum 25% rate), enter the amount of such income here.

Form 1116 (COPY 1) -- Foreign Tax Credit Comp Wks : Adjusted QDI income
Line 1l, columns A, B and C:
If the Foreign Qualified Dividends and/or Capital Gains Adjustment Smart Worksheet checkbox is not checked, from Line 1f.

Otherwise, from Line 1g, plus the result of one of the following calculations, depending on whether the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet is used:

If Schedule D Tax Worksheet is used.
 - Line 1j multiplied by the Sch D Tax Worksheet, line 40, divided by the Sch D Tax Worksheet, line 11a. The result is multiplied by .7071.
PLUS
 - Line 1j multiplied by the Sch D Tax Worksheet, line 11a minus line 40, divided by the Sch D Tax Worksheet, line 11a.
PLUS
 - Line 1i multiplied by the Sch D Tax Worksheet, line 37, divided by the Sch D Tax Worksheet, line 11b. The result is multiplied by .6313.
PLUS
 - Line 1i multiplied by the Sch D Tax Worksheet, line 11b minus line 37, divided by the Sch D Tax Worksheet, line 11b.
PLUS
 - Line 1h minus line 1i minus line 1j, with the result multiplied by the following ratio:
 -- Sch D Tax Worksheet, line 31, multiplied by .5051, plus
 -- Sch D Tax Worksheet, line 28, multiplied by .3788.
 -- The sum of the above two lines is divided by the sum of Sch D Tax Worksheet, lines 20, 28, and 31. The result is the ratio to be used. If the sum of lines 20, 28, and 31 is 0, the ratio is defined as 1.
NOTE: With the exception of the last line for how to calculate the ratio, the result of any calculation which has a 0 as a denominator is defined as 0.

Schedule D Tax Worksheet Line 40

http:

Schedule D Tax Worksheet Line 11a

0.

Schedule D Tax Worksheet Line 37

http:

Schedule D Tax Worksheet Line 11b

http:

Schedule D Tax Worksheet Line 31

0.

Schedule D Tax Worksheet Line 28

65,000.

Schedule D Tax Worksheet Line 20

0.

If Qualified Dividends and Capital Gain Tax Worksheet is used.
 - Line 1h multiplied by the following ratio:
 -- Qualified Dividend/Capital Gain Wksht, line 22, multiplied by .5051, plus
 -- Qualified Dividend/Capital Gain Wksht, line 19, multiplied by .3788.
 -- The sum of the above two lines is divided by the sum of the Qualified Dividend/Capital Gain Wksht, lines 11, 19, and 22. The result is the ratio to be used. If the sum of lines 11, 19, and 22 is 0, the ratio is defined as 1.

Qualified Dividend and Capital Gain Tax Line 22

0.

Qualified Dividend and Capital Gain Tax Line 19

65,000.

Qualified Dividend and Capital Gain Tax Line 11

0.


NOTE: Calculated result may be adjusted by up to $2 to allow columns A, B, and C to add up to the Total column after accounting for rounding.

 


View solution in original post

rogge1722
Level 8

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

Bring form 1116 up on the screen. Put the pointer on 1i (section 1250) and right click. On the box that appears, click on the bottom entry "about 1250". A box will appear with an explanation. Make sure that you need to make an entry. 1l( Net qualified etc), that is calculated by TT. Put the pointer on that entry and right click. On the box, click on "data source", and another box will appear explaining the entry.

ogunquitguy
New Member

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

Thanks but this did not help as I'm using a Mac. I tried ctrl/click instead of right-click but nothing happens. A double click does bring up sub-worksheets but nothing says "about 1250" or "data source". Any other ideas/suggestions?
cdbmkenirsk11
Returning Member

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

thanks but this did not help as there does not appear to be a way to bring a form up on the screen

cdbmkenirsk11
Returning Member

Form 1116/Foreign Tax Cred Worksheet>I need to enter different values for Part I-g-i and Part I-g-L but this causes Smartcheck error. What am I doing wrong/What to do?

When it raises the error

    "Foreign Tax Credit Comp Wks Section 1250 gains .. should not exceed total qualified dividends .. " 

It also shows me a number and invites me to t ype in a new number.

I have no idea why the number is there.

I type in a ZERO

I have no idea what I have changed.

Now it no longer raises the error 

       "Foreign Tax Credit Comp Wks Section 1250 gains .. should not exceed total qualified dividends .. " 

it says my tax return is okay now

.

Boy do I feel confident now!   Type in random numbers until you are allowed to file... pure genius.

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