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April 7, 2022
Question

Foreign Tax Credit mismatch with Total Income

  • April 7, 2022
  • 1 reply
  • 0 views

Form 1116 (Foreign Tax Credit) has line 3e (Gross Income from all Sources).  This line's value does not match Form 1040 Line 9 (Total Income).    Is this a bug ?

 

I'm using the Deskop version of Turbotax Deluxe 2021 on Windows.

 

 

Thank you 

    1 reply

    Employee
    April 7, 2022

    In Forms Mode bring up form 1116.  Scroll down to the box with the header "gross income from all sources."  Put the pointer over the "A" entry and right click.  On the box that appears, click on data source.  That will display the total income sources.

    badeshAuthor
    April 7, 2022

    Clicking on Data Source on line 3eA (Gross Income from all Sources Smart Worksheet)  shows a generic formula (see below) instead of my data.  I only have Form 1040 and Schedule D from this list.  No income is exempt.  There is no reason for this number not to match Total Income on Form 1040 Line 9.  In fact, this Number is greater than Total Income !!! 

     

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    Form 1116 (COPY 1) : Line 3ea
    Calculated Gross income from all sources:

    This is total income before deductions and is the sum of:

    Form 1040, lines 1, 2b, 3b, 4b, 5b and 6b plus
    Schedule 1 (Form 1040), line 1 plus
    Schedule 1 (Form 1040), line 2a plus
    Schedule C, line 7 (all copies) plus
    All gains reported on Schedule D minus Schedule D, line 11, Subtotal Line A(Form 4797, Gain from Part I) plus
    All gains reported on Form 4797 plus
    Schedule E, line 3 total plus line 4 total plus
    Schedule K-1 Worksheet - Partnerships Box 16, Code B (if it has a value); otherwise income reported on line 1, 2, OR 3 plus any amount on line 4 plus
    Schedule K-1 - Partnership Additional Information page 1, Box 11 section,Code A, line 1 (if positive) and line 3 and line 4 and Code I, line 5
    Schedule K-1 Worksheet - S Corporations Box 14, Code B (if it has a value); otherwise income reported on line 1, 2 or 3 plus
    Schedule K-1 - S Corporation Additional Information page 1, Box 10 section, Code A, line 1 (if positive) and line 3 and line 4 and Code H, line 5
    Schedule K-1 Worksheet - Estates and Trusts, Box 14 Code B : Foreign Tax Information section, line 7 (if it has a value); otherwise income reported in Part III lines 5, 6, 7 and 8 plus
    Schedule F, line 11 (all copies) plus
    Form 4835, line 7 ( all copies) plus
    Schedule 1 (Form 1040), line 7 plus
    All positive income amounts on the Other Income Statement.