Form 1116 - Total Gross Income

[mdd108]

How is total Gross Income calculated on form 1116?  

We calculated your gross income from all sources as $.........   How does Turbo Tax Calculate this?

Enter any positive or negative adjustment below

For this I add together all my income , gross rental income and sale prices of houses sold before allowable deductions.   Its many thousands of dollars more than the figure Turbo Tax calculated.   

[rogge1722]

From TT's on demand guidance:

Form 1116 (COPY 1) : Line 3ea
Calculated Gross income from all sources:

This is total income before deductions and is the sum of:

Form 1040, lines 1, 2b, 3b, 4b, 5b and 6b plus
Schedule 1 (Form 1040), line 1 plus
Schedule 1 (Form 1040), line 2a plus
Schedule C, line 7 (all copies) plus
All gains reported on Schedule D minus Schedule D, line 11, Subtotal Line A(Form 4797, Gain from Part I) plus
All gains reported on Form 4797 plus
Schedule E, line 3 total plus line 4 total plus
Schedule K-1 Worksheet - Estates and Trusts, Box 14 Code B : Foreign Tax Information section, line 7 (if it has a value); otherwise income reported in Part III lines 5, 6, 7 and 8 plus
Schedule K-3 - Partnerships Line B - Gross income from all sources
Schedule K-1 - Partnership Additional Information page 1, Box 11 section,Code A, line 1 (if positive) and line 3 and line 4 and Code I, line 5
Schedule K-3 - S Corporations Line B - Gross income from all sources
Schedule K-1 - S Corporation Additional Information page 1, Box 10 section, Code A, line 1 (if positive) and line 3 and line 4 and Code H, line 5
Schedule F, line 11 (all copies) plus
Form 4835, line 7 ( all copies) plus
Schedule 1 (Form 1040), line 7 plus
All positive income amounts on the Other Income Statement.

[mdd108]

thanks @rogge1722  ,yes I see how turbo tax calculated - gross rental and capital gains income 

but I get error message if I do not 

Enter any positive or negative adjustment below - turbo tax accepts my total gross income, gross rental income and gross sale price for property. Not sure why system is not calculating this but when I input this amount - it lets me proceed to file.    Is this right or why would I  need to make an adjustment to the figure Turbo tax calculated?

[rogge1722]

If the error does not indicate what the discrepancy is, I don't know why it is necessary to make an adjustment.

[mdd108]

Any foreign source qualified dividends or long term capital gains?

@rogge1722  See below - going through the form 1116 - the screen below tells me I have $854406 total foreign income - correct calculation - rent and house sale in one country only - the country that I paid tax in.  There is a further small amount of income from another country not included in above calculation. The Screen that is giving me bother is the Gross Income Adjustment below - the figure calculated  $176 795  is net income rent from two foreign countries, small pension and capital gain on house sale.  I am leaving the gross income adjustment box blank and when reviewing before filing  getting this  error message when case is reviewed prior to filing.    Check This Entry Form 1116 (COPY 1): Line 3eb : Gross income from all sources should be greater than your foreign income on line 1. Review entries made for foreign income or enter adjustment as necessary.   Gross Inc Adjustment Working through form 1116 -  Form 1116 =  This is how much of the income you reported for the following country was qualified dividends or long term capital gain income.
Country Ireland     Total foreign income for this category $854,406     Foreign qualified dividends and l.t. capital gains

Form 1116

Gross Income Adjustment

We calculated your gross income from all sources as $176,795. Enter any adjustment (positive or negative) to this amount below.

Gross Income Adjustment (Positive or Negative)

[rogge1722]

From the data provided, it appears you inserted the gross foreign amount without the required adjustments.
Download the “2022 Instructions for Form 1116” and “Pub 514”.

Open the f1116 instructions and go to page 11. Under the heading “Adjustments to foreign capital gains and losses,” you will be using either worksheet A or B or the worksheet in Pub 514. The instructions will guide you to determine which worksheet to use. Whichever worksheet is used, after completion, you will have the amount to insert into f1116 line 1a.

That adjusted amount would be inserted into the screen "Other Gross Income - Ireland" which will be substantially less than the 845K presently listed.

[mdd108]

@rogge1722   Thanks i have studied how to fill out Form 1116 and have manually filled out the form. I compares with Turbo Tax.  However I think the Form 1116 is corrupted as keep getting stuck on this enter Any adjustment (positive or negative) to this amount -  See Below.

I saw on the discussions that it was a issue last year as well.   I followed advice given for last year deleted the form and re did. Same message.   I ended up putting in my total gross income for the rental income and sale of rental property and it accepted this information.  Worrying though I also just enter a completely  random set of numbers to test  and it was also accepted and cleared the error.  

@ Turbo Tax  is there an issue with Form 1116 

Gross Income Adjustment

We calculated your gross income from all sources as $176,795. Enter any adjustment (positive or negative) to this amount below.

Gross Income Adjustment (Positive or Negative)