How do I complete the Foreign Tax Credit Computation Worksheet?

gszak · ‎March 7, 2022

When TT was performing the "final check" on my return, it generated messages asking for more information related to Form 1116. The error messages asked me to enter missing information in a "Foreign Tax Credit Comp Wks." I don't know why this is happening, and I don't understand the missing information I'm being asked to provide. They include things like Adj Basis Fgn Inv Assets, Adj Basis Total Passive Inv Assets and others.

JohnB5677 · ‎March 7, 2022

In many cases, those questions can be left blank, or zero. It is looking for are two items --

Total interest & other expenses associated with this foreign income -- usually this is zero.
Next, it is looking for the total investment you have in the shares that generate the foreign dividend and foreign taxes.

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gszak · ‎March 7, 2022

Thanks very much. That's what I was thinking - but I wonder why Turbo Tax is asking me to provide this information after I've completed the section for Form 1116. Essentially, it seems to work like a "patch" to the software.