Foreign Qualified Dividends (FQDs) and MAXIMIZING your Foreign Tax Credit (FTC)

[rogge1722]

Another suggestion.

On Schedule D, at the bottom, click on the quickzoom button for the schedule D worksheet. If it comes up and there is data in it already, then bring up the QDCG worksheet and delete it

[Gezter]

Sched D line 19 is blank. It is supposed to be line 18 of the 1250 w/s - which =1. Did override and entered 1 in D line 19. Line 20 "YES and NO" boxes - neither checked.

In both cases the D w/s was NOT created.

So - I dropped the idea of using 1250 and did a bunch of overrides.

1 Override D line 20 and checked the "NO" box

2 Override D line 22 to uncheck  "YES" box (line 20 "NO" says don't complete 21 and 22)

3 Override D w/s line 3 to enter 4g amount from 4952 as it did not populate automatically.

This seems to get close to producing the right result.

[Gezter]

@rogge1722 

Sorry just seeing this. Looks like the QDCG sheet went away when I unchecked d line 22 boxes.

On 4952 I see the Special Election Smart Worksheet. It seems to want to limit the 4g amount in some way. When I entered a really high value (20K) as investment expense I did see a Sched D w/s created but of course the tax was all wrong.

Seems to me that TT has not programmed for the case where all I want from 4952 is to choose to have my FQDs treated as ordinary income. Something in the code also prevents the 4g value I enter from properly conveying to all the right places. Really appreciate your insights, suggestions and help - many thanks.

[Gezter]

@rogge1722 

Sorry - another question - because I overrode D line 20 and checked the "NO" box I see an error...

"A381 should not be overridden and changed for electronic filing". Does this mean I cannot e-file?

Of course if I cancel the override it goes back to using the QDCG w/s. 

[rogge1722]

If you are willing, I suggest doing a complete restart. Remove all overrides. Remove that capital asset sale that has data in the QDCG wks. Delete the 4952. Retain the 1099-DIV and the f1116. If it is cleaned up enough, in Forms Mode bring up the QDCG wks. It should contain the data at least from the 1099-DIV. Then click on the Open Form Button and type in Schedule D. Select the Schedule D wks. It should also contain data. Then insert $1.00 into box 2b of the 1099-DIV to make the schedule D wks replace the QDCG. If that works, then start with the wages & income and review or re-enter what is necessary to build up the Schedule D wks. After you complete the f1116 then in Forms Mode bring up the 4925, insert the data, then the overrides on the Schedule D wks and the f1116 wks.

[Gezter]

@rogge1722 

Thanks for your suggestion.

Created a new return. Entered 1099 div, QDCG is listed in left hand pane. Viewed D w/s - it to has data - same as QDCG. Entered $1 in 2b of 1099 div. QDCG still listed in left hand pane - no D w/s is listed.

Entered test data on D to look at lines 18,19 and 20. 18,19 both blank. 20 both boxes unchecked. 22 1st box is checked.

Entered data on 4952 line 4g.

D did not change. D w/s did not change.

D line 20 reads "Are lines 18 and 19 both zero or blank and you are not filing Form 4952?" 

18 and 19 are blank AND I have 4952 in left hand pane. SO TT should have checked the "NO" box in line 20 and should be using the D tax w/s. 

How do I report a bug in the software?

Cheers

[rogge1722]

Everything was OK until you inserted  the $1 into box 2b of the 1099-DIV and it failed to switch to the D w/s. Did the  D itself  and the 1250 wks appear in the left pane?

I'm assuming that the new return is a 2nd one using a hypothetical user.  Try deleting all the forms then exit the program  without saving and open it back up and see if you can get that QDCG w/s to switch to the D w/s.  

[rogge1722]

I should have mentioned that the routing of the $1.00 on the 1099-DIV box from box 2b appears on the 1250 wks on line 11a , then on line 18, then on to Sch D , line 19.

[Gezter]

@rogge1722 

Tried your "reset" strategy - no change. I do see the D and 1250 left hand pane. The $1 does track through 1250 except it fails to end up on D line 19.

Running out of time here so I will file without using the protax strategy as I expect a refund. I can then do further research to understand why TT (and other tax software)  fails to allow the protax strategy. If it proves possible I will file an amended return to claim the additional refund ($KK). Thanks for all your help!