turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

F1116--Line 1 a

Line 1 a F1116 LTCG total depends on my LTCG tax bracket-rate  factor?

As Example: If  FT LTCG is 1000$,and my LTCG US tax bracket is 0%  for my income bracket what amount I will have in Line 1a?

(In TT the screen--Other Gross Income - country XX,just gives two fields to input with

Description      Amount for country XX)

(Pl.Consider about only LTCG  here--Not losses or differential etc-What will be LTCG amount to be mentioned in  above filelds or line 1 a)?

Thanks.

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

6 Replies
rjs
Level 15
Level 15

F1116--Line 1 a

Duplicate question. Please post your question only once.

F1116--Line 1 a

Sorry,It was  inadvertent and browser issue.

BUT can you please advise on the  original issue as I  am waiting to do my taxes.

If the Gross LTCG is 21,000?

Thnaks again.

F1116--Line 1 a

I'm confused by your post.

It appears that you are referring to line 1a, ("Gross income from sources within country shown above..), of Form 1116, ("Foreign Tax Credit"). That line is asking for an income amount, it has absolutely nothing to do with your tax brackets or your LTCG rates.  You simply indicate the dollar amount of the income sourced from that foreign country and what kind of income it is by checking the appropriate box up above.

F1116--Line 1 a

Thanks for the reply.But i was in dilemma.

My question was--per F1116 instructions page 7,Foreign qualified dividends and CAPITAL GAINS-

'If you have foreign source qualified dividends or foreign source capital gains (including any foreign source capital gain distributions) or losses, you may be required to make certain adjustments to those amounts before taking them into account on line 1a (gross income) or line 5 (losses)'

Also Pub514 says--'Lines 1a and 5 (Form 1116). If you have foreign source capital gains or losses, you may be
required to make certain adjustments to those foreign source capital gains or losses before
you take them into account on line 1a or line 5 of Form 1116. Use the instructions under Foreign Qualified Dividends and Capital Gains (Losses) in the Instructions for Form 1116 to determine if you are required to make adjustments'

Per that we have to make adjustments to line 1 a 'Gross LTCG' and adjust (factor down)per our applicable LTCG rate group which will be applicable LTCG rate(For 0% rate group--multiplication factor is 0! and for 15% rate group factor is 0.4054)only not full?

Request guidance whether the above is applicable to line 1 a( gross) then?Please....

F1116--Line 1 a

I must admit, to a large extent I don't understand what you are saying here.

 

So, you're positive that you need to make adjustments? 

This is what the instructions say:

------------------------------------------------------------------------------------------------------------------------------

Form 1040 filers.

You must adjust the amount of your foreign source qualified dividends and capital gain distributions if both of the following apply.

Line 7 of the Qualified Dividends and Capital Gain Tax Worksheet is greater than zero.

Line 25 of the Qualified Dividends and Capital Gain Tax Worksheet is less than line 26 of that worksheet.

------------------------------------------------------------------------------------------------------------------------------

 

And you are sure you don't qualify for the adjustment exception?

This is what the instructions say about that:

----------------------------------------------------------------------------------------------------------------------------

Adjustment exception.

If you qualify for the adjustment exception, you can elect not to adjust your foreign source capital gain distributions and qualified dividends. You make this election by not adjusting these items. If you make this election, you must elect not to adjust any of your foreign source qualified dividends or capital gain distributions.

Adjustment exception for Form 1040 filers.

You qualify for the adjustment exception if you meet both of the following requirements.

Line 7 of the Qualified Dividends and Capital Gain Tax Worksheet doesn't exceed:

$315,000 if married filing jointly or qualifying widow(er),

$157,500 if married filing separately,

$157,500 if single, or

$157,500 if head of household.

The amount of your foreign source capital gain distributions, plus the amount of your foreign source qualified dividends, is less than $20,000. For this purpose, ignore any capital gain distributions or qualified dividends you elected to include on Form 4952, line 4g.

See special rules if you are subject to the alternative minimum tax.

----------------------------------------------------------------------------------------------------------------------------

 

I'm going to guess your answer to both of the above questions is "Yes" since you mention $21,000, which is more that $20,000. 

 

I've never had to make any of these adjustments but it appears the first thing you need to do is decide if you should use Worksheet A or Worksheet B in the Form 1116 instructions to make your adjustments.  The Worksheets have their own instructions. 

 

I can't possibly respond to your explicit question of what number you put in the first line of Form 1116 given your (assumed foreign) $21,000 LTCG.  The number you'll enter there depends on other numbers within your income tax return that I or anyone else answering questions in this forum can't possibly know.  This is a user to user forum so no one here can see your income tax return.

F1116--Line 1 a

Thanks for the reply.I appreciate your inputs.

The first one is no and second one is in borderline(may be) Yes.I need to  recalculate and see .again.

Can you please check and inform(in your opinion) the above mentioned topic of exception clause  relates to line 1 a or line 18 of F1116.?

 

 

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies