Form 1116, General Category Income, TurboTax is doubling the amount to go into line 3d

[BAKanyon]

The subject says it all really.  When completing my Form 1116, General Category Income, TurboTax is doubling the amount on line 3d from the amount on the form.  I can't find the figure that TurboTax is using, other than it is twice that shown on anywhere else on my Form 1116 or Form 2555.  

If I override line 3d, TurboTax tells me I won't be able to e-file the return.

This error is resulting in a significant increase in my taxes.

Where does TurboTax get the figure it puts in line 3d?  The program gives no indications.

[rogge1722]

From TT's on demand guidance:

Form 1116 (COPY 1) : Line 3d

Part I, line 3d, all columns:

From the corresponding copy of the Foreign Tax Credit Computation Worksheet, line 1f of the corresponding column. Additionally, if this is a General category of income (Box d is marked above), and there is an entry in the related column in the Income Excluded on Form 2555 Smart Worksheet on the Foreign Tax Credit Computation Worksheet, then from the corresponding copy of the Foreign Tax Credit Computation Worksheet, line 1f of the corresponding column, PLUS Form 2555, line 45, of the indicated copy(ies) of Form 2555.

Form 1116 (COPY 1) -- Foreign Tax Credit Comp Wks Link for 2555
Form 2555 p3-T Line 45
Form 2555 p3-S Line 45
Form 1116 (COPY 1) -- Foreign Tax Credit Comp Wks Gross income

[pk]

@rogge1722 , if you still need help on this , please would you consider giving some details ---

(a) are you qualifying for foreign income exclusion with 2555  under physical presence test  or choosing foreign tax credit ?

(b) which country are you in now  and where was the income earned ?

(c) should I assume that you are US person ( citizen / GreenCard); and if not citizen, then which country are you a citizen of

(d) can you give rough figures -- foreign earned income, foreign taxes paid, when was this foreign income earned  etc.

Thank you for providing answers so I can replicate the scenario and see what is TubroTax doing

[jde-utx]

I'm having the same issue, googled it and found this entry.  Luckily in my case the result is still zero US tax owed, but the value for 3d "gross foreign source income" is 2x what it should be in my form 1116.  In 3e the "gross income from all sources" is what it should be, roughly half the value for 3d.  I've been through it all many times and I see no mis-entry on my part, seems like a bug.  Please advise!

[jde-utx]

By the way, I see this response that the value on the Foreign Tax Credit Computation Worksheet, line 1f is added to the value in line 45 of Form 2555.  Doesn't seem correct though, that the full unadjusted amount is added to the amount by which the income is adjusted (in my case all of it), and that sum is put forward in line 3d of form 1116.  The net result is that the income from foreign sources is higher than the income from all sources, the latter of which should be a superset.  I don't see a corrective action for this.

[DaveF1006]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: 

If using Turbo Tax online:

1. Click on Tax Tools in the black left menu bar
2. Click on Tools>share my file with agent
3. press ok and you should get a token number

At the top menu in the black line at the top of the page go to Online. 

1. From the menu, select Send Tax File to Agent. 
2. You will see a message explaining what the diagnostic copy is. Click Send and then you will get a Token number. 
3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@jde-utx