It appears your question was cut off. Can you please repost it with specific details regarding the concern you have with your income? Also, which form are you referring to?
Thank you Michelle. The Form 1116 is not ready yet for filing 2021 federal taxes. I was browsing the 2020 return (filed and accepted return - last year). Turbo Tax does not explain how line 3e, form 1116 has been calculated. It does not look easy? The Gross Income is higher than the net income in Form 1040, line 9. There are some discussions in the TT community. But I am unable to understand how the excess income has come from in the return that has added to Form 1116, line 3e. Thank you. Please note this Form 1116 is not ready yet for filing 2021 taxes. Thank you,
Line 3(e) should report all income, foreign and domestic. It can be higher than your income reported on form 1040 if you excluded some of your foreign income from taxation.
Thomas:
I do not see any foreign income excluded in the Form 1040 line 9; there is no foreign income per se; An ADR pays dividend which is included in the dividends and it is already included in Form 1040 line 9 total. I wonder why Turbo Tax provides a sheet as to where the extra amount is coming from? It is not at all clear; there are some discussions in TT community but those tips do not seem to solve the issue. Thank you.
Folks:
It is not a mystery; if you have any capital loss in schedule D, any carry over capital loss, those losses must be included for the gross income for the line 3e in the form 1116. At least, this solves my apply difference between the amounts compared to Form 1040, line 9 versus Form 1116, line 3e. One gentleman by name Joshi has explained this but perhaps I did not carefully to my case. Please confirm this inference is correct. May be Turbo Tax provide a simple worksheet for this income in line 3e of the form 1116.