Form 1116: "State Income Tax Allocation Smart Workbook" missing entry

[AhuraMazda]

Turbotax does not calculate Form 1116: "State Income Tax Allocation Smart Workbook" entry for the percentage of State Income Tax definitely related to foreign source income.

OR

The dollar allocation of state income related to foreign source income.

Turbotax Form 1116 Line 4 (US Source State Income Tax) calculations is in reality calculates Schdl. A (Form 1040) Line 5E (SALT cap = 40,000) divided by Line 5d of Schdl. A

From internet the formula for Foreign Income Allocation of State Income Tax is = (Foreign Income / State AGI)*(Total Sate Income tax)

Need to understand if the "Total Sate Income tax" in the above formula is the value from Form 1116 Line 4 OR is it the value from California Form 540 Line 64 (Total California State Income Tax) 

Thank you.

[MelindaS1]

Use the tax amount from California Form 540, not the amount from the 1116 calculation. You'll want the total state figure as your starting point to ensure that any limitations are not double counted, or missed. 

[AhuraMazda]

@MelindaS1 

As in Turbotax there is no "Foreign Income Allocation of State Income Tax" the formula I use

 = (Foreign Income / State AGI)*(Total Sate Income tax)

For "Total Sate Income tax" should I be using:

California Form 540 Line 31 (From Tax Rate Schedule) 

OR

Form 540 Line 78 (Total Payments)

Thank you

[MelindaS1]

Use the amount on Form 540 Line 31, since it is reflective of the official CA rate, whereas the payments could be reflective of estimates.