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Form 1116 has incorrect values

Forum|Forum|6 years ago
February 22, 2020
3 replies
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Hi,

I have 3 (!) issues with Form 1116, please help.

1) When calculating my total foreign income (Part I 1f), it adds the difference between the max exclusion ($105900) and the total foreign income. So it lists on line 1 a&b Country A & foreign income, Country B & foreign income all correctly, but then on line 1e for Country A adds income from Form 2555, which is exactly the difference between my total minus the max exclusion, making the overall total incorrect. Should I just change the income on 2555 to $0?

2) It's asking me to fill out Part III 12 during the review. I have no idea what to put there

3) Under foreign tax carryover, according to my 2018 return done by an accountant, I had a credit in 2016, which I used partially with the remainder having been used in 2018. So the balance for a carryover for 2019 is $0, which is showing correctly. However, when calculating the carryover for 2020 below, it doesn't calculate the negative amount for 2018 and therefore adds the balance from 2016 plus a balance for 2019, which is incorrect (since 2016 was already used). Is this a software bug and how can I adjust this?

Thank you for your help!

Oh PS, when I go to Wages & Income > Foreign Earned Income, it shows the correct total. Other than that I do not have any other wages entered, When clicking through Foreign Earned Income, I type in the Country A/B breakdowns and it gives me the wrong total for Country A in the summary. I triple checked the values I entered for Country A and B and they do sum up to the total Foreign Earned Income I've entered. Thanks

TurboTax Deluxe Online

Best answer by cervi

Never mind, I just deleted forms 2555 and 1116 and entered the exact same information again and voila, it worked. Good for me, not good in terms of the quality of the software.

I also left out the carryovers from previous years since the total equaled 0 - the system gave me trouble about it otherwise. Again, shouldn't be such an issue.

C

cerviAuthor

*moved the PS to the original post*

C

cerviAuthorAnswer

Never mind, I just deleted forms 2555 and 1116 and entered the exact same information again and voila, it worked. Good for me, not good in terms of the quality of the software.

I also left out the carryovers from previous years since the total equaled 0 - the system gave me trouble about it otherwise. Again, shouldn't be such an issue.

J

jamesjudie

Form 1116 is wrong.... I can't correct it. ( On a Mac without a Forms mode.). How do I get Turbo Tax to correct it?

Please, I need help!

M

MayaD

File Form 1116 to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession.

To correct you entries on form 1116:

Login to your account.
Select Federal from the left menu
Go to Wages and Income
Scroll down to Less Common Income.
Select Edit/Start next to Foreign Earned Income and Expenses.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

F

fkearney44

I had a similar problem. Turbotax '21 downloaded my Consolidated 1099s from Fidelity automatically. When I got to the Foreign Tax credit on Form 1116, it put the WRONG NUMBER in Line 1a. The number entered just happened to be the sum of 1099-DIV Line 3 Non Dividend Distributions (was from a foreign source) and Line 7 Foreign Tax Paid. Line 7 should NOT be used here. The Fidelity statement summarizes has a Foreign Income and Taxes Summary at the end with the correct number. This year, Turbotax just blew it.

Why pay all this money to make things easier, when it actually makes in more difficult??