Form 1116

[Saraf]

I reside in Canada and over 99% of my income is passive from Canadian sources. However line 3e on my form 1116 shows more gross income than I actually received so the calculation for line 3f underestimates the proportion of my income that is from foreign sources. Can you explain why 3e is inflated? Should I override it?

[Anonymous]

why are you filing a US return?  if not, you need the Canadian website.   

[Saraf]

Because I am a US citizen and have to. I file Canadian forms in Canada.

[Saraf]

So I still don't have an answer to my original question which is why Form 1116 is displaying an inflated income amount in calculating how much of my income is from foreign sources.  Can someone help with this?

[Anonymous]

have you check all your income entries to make sure you did not designate them as foreign.   

for dividends check 1099-div box 7d.

1099-int box 6d

schedule E page 1 - may require direct entries for 1116.  

schedule E page 2 - make sure correct amounts for all line 16 entries from K-1's.  

[Saraf]

Thank you. I had done all those things, but I checked again. I'm leaving 1116 as is. Thanks again for the reply.