Problem with the software

Forum|Forum|1 year ago
February 20, 2025
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I have been using Turbotax for around 30 years. I think I have found a problem with the 2024 software. I clicked on "send file to tax agent" and received a token number. Now how do I get help? It didn't give me the opportunity to explain what I think is wrong. Thanks

Best answer by SusanY1

Thank you for providing the token so that we could check on this for you.

You are seeing the $3,092 because there is a reduction required for the dividends when they are qualified dividends (subject to long-term capital gains tax treatment). This is why you are seeing the change right after you confirm the amount of the foreign dividends that were qualified dividends in the Smart Check.

If you are using the desktop TurboTax application, you can see this number by going to forms mode and looking for the "1116 Comp Wks". On this worksheet you'll see the full 5,721 listed on line "h" and then you'll see the adjustment for "QD/LTCG" (which is Qualified Dividends/Long Term Capital Gain). After the adjustment, the remaining amount is the 3,092. This number is then used in the credit calculation.

You will find more information about the adjustment in the instructions for Form 1116.

The other deductions (Line 3b) number are deductions from your gross income (not the foreign income) that aren't related to the foreign income. Those figure into the final formula for how the credit is calculated. Those come from above-the-line deductions shown on Schedule 1, Lines 15 and 16. In your case those are deductions for one-half of the self-employment tax and contributions to self-employed pension plans.

If you review Schedule 1 and add those lines together you'll see the same number you're seeing on line 3b.

LeticiaF1

Before we can help you, you would have to let us know what issue you are having. ‌If you already generated a token, you can post your Token number here.

LJN123Author

My token is 145330069-55055787. I have been using TurboTax for around 30 years - starting using it when it was still a DOS program. For the past several years, my husband's 1099 has shown foreign taxes paid and we have been able to claim a foreign tax credit for the full amount. This year, for the very first time, the program did not allow us to take the entire credit, so I started digging down into the Form 1116. I found that the program on Part I, line 1a shows an amount of gross income from the foreign country of $3,092. If I try to drill down it says this amount comes from the 1099s. I do not believe this is true. I reviewed his 1099 many times and this number does not appear anywhere. There are just two amounts related to the foreign income - first, $5,721 of qualified dividends and secondly, the foreign taxes paid of $1,509. The program also lists other deductions (line 3b) which I have no idea where this number is coming from. I believe the program is wrong in disallowing any of the foreign tax credit. I'm not sure if I sent the correct version of the return to you. The foreign tax credit doesn't get partially disallowed until I run Smart Check. Two errors come up and the second one forces me to enter the qualified dividends of $5,721 and then the foreign tax credit gets partially disallowed. (Also, the first error doesn't make any sense either). Thanks for your help!!