Question

Form 1116 LIne 3b Column a asks for a detailed explanation. What are they asking for here?

Forum|Forum|6 years ago
June 8, 2019
3 replies
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Under "fix errors" the Turbo Tax program asked me to provide a detailed explanation for form 116 line 3b column a. What are they looking for?

TurboTax Self Employed Online

R

rogge1722

Employee

TT wants a description of the deduction posted on line 3b. Possible examples might be alimony payment or medical expense, etc.

P

potentilla

Employee

i don't know where TT gets this number. Last year, not knowing where the number came from i put for the explanation: "Balance of deductions from income not claimed as definitely related on line 2" . And i worked so far! I sure would appreciate a more valid response. TT must be pulling it from somewhere.

P

potentilla

Employee

actually, i think i figured it out by reading https://sftaxcounsel.com/demystifying-irs-form-1116-calculating-foreign-tax-credits/

3a for me is $10000 because the SALT are capped at 10000. Thus, the other deductions are state taxes that went over the 10000 limit ( I live in NYS)! Thus, are balance of my deductions i am not allowed to claim on line 2. So, i added "These are deductions beyond the $10,000 SALT limit."

T

ThomasM125

Those expenses would have been entered by you when you went through the foreign tax credit section in TurboTax. You would see a screen that says Definitely Related Expenses and you would be asked to enter a Description, Amount, Country, and Deduction Type.

On the next screen you would see a screen that says Explanation of Expenses on which you are requested to enter an explanation for the expenses.

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