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Foreign tax credit form1116

I had input my foreign earned income during the interview process and also the foreign taxes paid during the Form1116 interview process. The Form 1116 was generated without problem. Later on I updated my foreign earned income in the Wage & Salaries section and foreign taxes paid with form1116. Then I got error from Form 1116. My foreign earned income was doubled in F1116 while my total gross income from all sources stays correct. I was getting the error says "your foreign earned income should not be more than total gross income from all sources". What should I do when updating foreign earned income?

 

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1 Reply
ThomasM125
Expert Alumni

Foreign tax credit form1116

It sounds like you made an additional income entry in the Deductions and Credits section, then Estimates and Other Taxes Paid, then Foreign Taxes. That is where you enter your foreign income for purposes of calculating the foreign tax credit. The income entered there will not affect the income reported on your tax return. I suggest you go back through that section and make sure all of your entries were accurate.

 

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