Form 1116

[Fotoman1]

I'm using Turbo Tax Desktop basic version.

I'm taking the standard deduction.

During the Smart Check I've gotten this message:

Form 1116:  Detailed must be completed.

Enter your explanation here to complete the required statement.

It must show the other deduction items for Line 3B Column A.

This is for a $231 investment loss from a taxable mutual fund.  The amount was posted from a direct download from the Fund itself so I don't know what explanation I should put there, if any.

[rogge1722]

In forms mode, bring up the f1116 worksheet.  Scroll down to part 1 3b and see if there is the cell has something that does not belong there.  Delete it if something foreign in the cell.

[Fotoman1]

Thank you.  It didn't work but I think I found the problem.

I entered an expense on form 1041 Estates and Trusts on line 11A as a final expense.

This same amount is what appears on Form 1116 3B.  When I hit the search button it takes me to a line 3B 1 Remaining Deductions from Gross Income for the exact same amount entered in form 1041.

I reviewed the deductions for my 401 K and taxable mutual funds and could not find an amount that 3b is indicating.  Even if I add up the Foreign Taxes paid it doesn't come close to the amount listed on 3b,

I don't know where to go from here.  Could it be a problem with the software.  I'm inclined to believe it's me doing something wrong.

[DaveF1006 · Accepted solution]

 Yes.  This makes sense. You entered a final expense in Line 11A on your K-1 and this flows to Line 3B on your Form 1116.  Now the program is asking for an explanation.  i think this is what you issue is.

Since you are working in Turbo Tax Basic, go to your forms mode. ‌Locate the Form 1116 worksheet that should be underneath Form 1116. Now go to Part 1, Line 3(B)(2) and type in Final K-1 Expense in the manner as shown on this screenshot.  This should clear the error.

[Fotoman1 · Accepted solution]

Thank you for your excellent assistance.