Form 1116 - Explanations

Forum|Forum|5 years ago
July 9, 2020
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The form 1116 and 1116 Copy 1 shows an error. T. Tax is asking for Explanation statements for Line 3 A, 3 B and 3 C. These are Deductions not related to the foreign source income.

What exactly is the software asking ? Can you help ?

Best answer by rogge1722

From TT's on demand guidance:

Lines 3a and 3b, deductions not definitely related:

Some deductions on your return may not definitely relate either to your foreign income on line 1 or your U.S. source income. Some examples of these deductions might be medical expenses that you deducted on Schedule A, line 4, or alimony that you paid and deducted on Schedule 1 (Form 1040), line 18a. These types of deductions need to be entered on lines 3a or 3b on the Foreign Tax Credit Computation Worksheet.

If you don't itemize your deductions, your standard deduction will automatically be brought to Form 1116.

Describe on the explanation statement what the deduction was for such as the examples given above.

rogge1722Answer

Level 10

From TT's on demand guidance:

Lines 3a and 3b, deductions not definitely related:

If you don't itemize your deductions, your standard deduction will automatically be brought to Form 1116.

Describe on the explanation statement what the deduction was for such as the examples given above.

goldiegirl

Level 2

Mine shows the standard deduction and my return is getting rejected because of this stupid glitch.

blackrhino

Level 2

Funny software. I re-ran through the Foreign Tax Credit section, making no changes (just clicking continue) and then re-submitted my return and it went thru. No idea why it was rejected at first and accepted the second time thru. Still interested in others experience with this as it seems like a glitchy area.

Spoke too soon. Had to change the Date Paid or Accrued from 'Various' (which I've used for a number of prior year's tax returns) to a real date (I used 12/30/2020). That worked. Return is accepted by the Feds now.