Should I be taxed on gross or net interest and dividends? I was charged fees that reduce the net income, but Turbotax does not offset these costs in its calculations.

It depends. If this is United States Interest and Dividends, you should request Forms 1099-INT and 1099-DIV, but would typically be gross earnings. 

If the interest is less than $10, the institutions are not required to issue the form.

 

If you are referring to foreign income, then there could be other filing requirements based on the amount of the earnings.

See this article for additional details:

Fiiling requirement for foreign income.

Foreign Cryptocurrency Wallets

 

The income is foreign sourced, hence no 1099's.  I am aware of foreign reporting requirements for the IRS and FinCEN. I'm also aware that the new tax law eliminated deductions for investment expenses and surmised that was the reason why Turbotax did not reduce the dividend income despite the expenses incurred to obtain the income.  So am I correct in my understanding that the new rules penalize investors by reducing their income from passive investments, such as interest and dividends?  Was this the intention of the law?  It certainly discourages paying fees to investment firms.

No, the Tax Cuts and Jobs Act did not have the purpose of discouraging investment, but there were significant changes that will impact tax years 2018-2025. I acknowledge the frustration. Prior to these changes, 1986 was the most recent major change. There are other ways to maximize your returns on investments.

 

You may want to consider the TurboTax Tax Reform Center as an additional resource.

Thank you. Sounds like I need some professional assistance. Can you point me to someone I can employ for this purpose?

Yes! There are two resources Intuit provides for financial guidance. Intuit is a progressive, global company you can trust.

 

There is a Community for Investing Topics that is searchable

There is the Intuit Tax & Financial Center.

Thank you for your help.