Question on Form 1116 - Foreign Tax Credit

[aptiva4tt17]

The "Gross Income from all sources)" on Line 2e is almost $30K higher then my AGI.  I read the information on "Source" of that number.  It includes all income without taken account of any losses.

I have a simple tax return:  Investment Income,  Social Security and Pension.  I have no Schedule 1, C or F income.  K-1 is passive losses that are deferred.  So I add back all the losses on Schedule D to my AGI and my calculated adjusted total income from all sources is about $7,500 lower than the number on Form 1116, Line 2e.  I also double checked by adding, Lines 2b, 3b, 4b, 5b, 6b, and all positive numbers on Schedule D.  And the result is the same $7,500 lower than Form 1116, line 2e.  As I mentioned, I have no Schedule 1,  Sch C [self-employed] nor F [Farmer] income.  The only reason that Form 1116's Total Income is $7,500 higher than my manual calculation would be some other income [none] or Losses I overlooked.  Given the nature of my tax return, there is no other losses that has been deducted from AGI.

Turbotax should really document its numbers by providing the user s listing of the numbers comprising the total on line 2e.  If I miss that listing, please point me to it.  If not, where should I look for that $7,500?

Thanks.

[Mike9241]

There is no 2e on the actual form. Do you mean 3e?

There can be reasons for this, and in some cases, TurboTax may be wrong. 

Read the instructions for 3d and 3e. This may help you to determine whether the number as calculated by TurboTax is correct. (there are cases where the number will not conform to the IRS instructions. For example, entering multiple security trades on a single line on Form 8949. Losses don't count but there's no way for TurboTax to know this. You would have to go to the foreign tax section of TurboTax to modify gross income from all sources.

https://www.irs.gov/pub/irs-pdf/i1116.pdf 

[aptiva4tt17]

Your are right.  It is Line 3e.

I have more than one Form 1116.  Does it matter on which one I make the adjustment on?  And do I need to attach my computation to document the adjustment to a lower number?

[MarilynG1]

You should make an adjustment to your first Form 1116.  However, you may not be able to Efile if you do so.  If you have not yet identified why your calculated AGI is lower than the amount for 'Gross Income from All Sources', here's more info on Calculations for Line 3e on Form 1116.

@aptiva4tt17 

[aptiva4tt17]

I entered the Adjustment and Turbotax shows minimal impact on my taxes.  So, I just left Turbotax's original number alone.

I agree with the other poster's comment that Turbotax should provide a worksteet listing the derivation of it Line 3e Total.