The Form 8116 line 1a appears to be fed by the 1116 worksheet, but the totals from the worksheet don't pull to the main form. The result is income from foreign source (RIC in my case) does to get reflected in row 1a, column A or column C, which results in a zero reported revenue amount being netted against the foreign taxes paid in the calculations for line 7. The ultimate result is a reported loss equal to the total for line 6 and no tax credit is taken on the return. I tried to enter an override on the form 1116, but that results in the return not passing Smart Check. How can I address this problem?
I am the original poster. I edited the original post to reference the correct form.
Per IRS instructions, line 1 and line 3d should have the same amount. The TurboTax software is only pulling the 1099 amounts to line 3d, it is not reflected in line 1 and therefore the form does not generate the proper foreign tax credit amount.
Please tell me how this can be addressed by me or correct the software. An override prevents passing the Smart Check and prevents electronic filing.