Form 1116 Credit Amount (Line 35) is Double the calculated amount (Line 24)

Forum|Forum|5 years ago
February 24, 2021
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As of 2/24/21, my Form 1116 Credit Amount (Line 35) is double the calculated amount on Line 24. Per the form instructions the Line 24 amount should be carried over to Line 33 and flow through to Line 35, but it is not (Line 33 is blank and Line 35 is double the amount calculated in in 24). Everything entered on my 1116 worksheet and the rest of Form 1116 appears to be correct and is consistent with how foreign dividends were entered into TurboTax last year. I had no foreign tax credit carryover from last or previous years. I do show an AMT foreign tax credit carryover from last year, per the Form 1116 it is not utilized for the purpose of the foreign tax credit. If I override Line 35 with the correct Line 24 amount I get an error that I will not be able to file electronically. I am unable to determine if I am doing something wrong or if there is some error here.

Best answer by cinstr

As of the 2/27/21 TT20 release the issues I mentioned above have not been corrected.

Update: Not sure why this corrected the issue. All my foreign income and taxes paid came from Interest & Dividend accounts. I deleted the Form 1116 Worksheet that had been generated automatically by TT and the calculation issue was resolved on Line 35 of Form 1116.

rogge1722

Employee

In Forms Mode, bring up f1116. Put the pointer on line 35 and right click. Then click on "data source". It might help to locate where is excess amount is coming from. You can do the same for line 33 and possibly deduce where and why these anomalies are occurring.

cinstrAuthor

Thanks for the suggestion. I had tried that previously without helping to resolve my issue. When I right click and select Data Source:

On Line 33, the Data Source description is for Line 31. Not what I was expecting.
On Line 35, the Data Source description is for Line 33. Not what I was expecting.

I reviewed the Data Source info for Line 33 (found under Line 35) and the only thing remarkable is that TT is saying I should not file the Form 1116 with my return. In fact it is marked at lest twice on the form.

The Form 1116 on-line Tax Guide does not have an explanation for Lines 31 and 33.

Not sure if it makes any difference, but I have an incomplete Schedule K (info not due to me until next month). This is a domestic partnership, so I don't think that would be relevant to Form 1116.