I am using the Windows desktop version of TurboTax Deluxe to prepare my 2023 Form 1040 and am claiming a foreign tax credit for some foreign tax passed through to me from an estate on a Schedule K-1. The Schedule K-1 from the estate reports different amounts of regular foreign income and AMT foreign income. I cannot get TurboTax to report the correct amount of AMT foreign income on line 3d of Form 1116-AMT.
My TurboTax entries related to foreign income start with the Schedule K-1 Worksheet. I have entered the amount of regular foreign income in line 4a, column 1, of the Worksheet section for Box 14, Code B, foreign tax information - i.e., passive category foreign income sourced / allocated at the estate level. TurboTax correctly transfers this amount to both line 1d of the Form 1116 Worksheet and line 3d of Form 1116. On my return, the amount of adjusted foreign income calculated on line 1m of the Form 1116 Worksheet is the same as the amount of foreign income transferred to line 1d of the Worksheet, so TurboTax also correctly transfers the same amount of foreign income to line 1a of Form 1116. No problem so far - to my knowledge, TurboTax's Form 1116 for regular tax purposes is correct.
For the Form 1116-AMT, I need to enter the difference between regular foreign income and AMT foreign income reported to me on the Schedule K-1 from the estate. To do this, I have entered the amount of that difference on line 1 of the Form 1116-AMT Worksheet - i.e., gross income from sources within foreign country: AMT adjustment. TurboTax correctly transfers this adjustment amount to line 1a of Form 1116-AMT, where the total amount shown is the sum of the regular foreign income amount shown on line 1a of Form 1116 plus the amount of the AMT adjustment from line 1 of the Form 1116-AMT Worksheet. However, TurboTax fails to also transfer the AMT adjustment to line 3d of Form 1116-AMT, which therefore incorrectly shows the same amount of regular foreign income as line 3d of Form 1116, without the necessary AMT adjustment. I have been unable to find any place in TurboTax where it is possible to directly enter any AMT adjustment for line 3d of Form 1116-AMT.
I believe that TurboTax's failure to transfer the AMT adjustment entered on line 1 of the Form 1116-AMT Worksheet to line 3d of Form 1116-AMT is a bug. Because Intuit provides no other way to report bugs, I am posting my report here in the hopes that someone at Intuit will notice and do something about it.
