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Can I remove a value on Form 1116, Line 3b with online Turbo Tax?

Forum|Forum|4 years ago
March 29, 2022
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TT is putting in my Self-Employment deduction of $18 on this line. That money is directly related to U.S. Income and should not be on this line. I am using the online version, so can't go to Forms Mode to remove it. Where can I go in the questions to make sure this does not go on line 3b?

TurboTax Premier Online

Best answer by JohnW152

You can make the adjustment you’re referring to by walking back through your Foreign Tax Credit entries in TurboTax Online:

If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, click the Pick up where you left off button. Otherwise,
Click Federal in the left pane, if you’re not already there
Click Deductions & Credits in the banner
Scroll down and click Show more to the right of Estimates and Other Taxes Paid
Select Start to the right of Foreign Tax Credit
Enter all relevant information, and you’ll at some point see a screen called Definitely Related Expenses – [Country] and you’ll be asked to enter a Description, Amount, Country, and Deduction Type.

J

JohnW152Answer

You can make the adjustment you’re referring to by walking back through your Foreign Tax Credit entries in TurboTax Online:

If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, click the Pick up where you left off button. Otherwise,
Click Federal in the left pane, if you’re not already there
Click Deductions & Credits in the banner
Scroll down and click Show more to the right of Estimates and Other Taxes Paid
Select Start to the right of Foreign Tax Credit
Enter all relevant information, and you’ll at some point see a screen called Definitely Related Expenses – [Country] and you’ll be asked to enter a Description, Amount, Country, and Deduction Type.

6

64dancerAuthor

Great Answer. You did so well on that one, I thought I'd try one more.

Another question, I need to use Form 8960, Line 7 for a recovery of state taxes from 2020. I am just not sure if it goes on my 2021 tax return or 2022 since you add it in the year of the recovery. I received my state refund in 2021, but my federal return is coming (supposedly on the 31st) in 2022. Which recovery are they talking about?

J

JohnW152

For income taxes you paid in 2020, with at least a portion of that being refunded in 2021, the recovery would be reported in 2021.

I’m not sure I understand the relevance of your federal return in relation to state sales tax. Please provide further details, as you deem relevant.

As an FYI, though, you might look at the second paragraph under Deduction recoveries in the 2021 Instructions for Form 8960 for more specific state income tax information.