I have asked this question on forums.turbotax.com and got no responses. So I'll try it here. I have $366 of foreign tax credit -- all reported on
1099-DIV (dividends and mutual fund distributions). [TurboTax] In filling out the Form 1116: For Line 1a "Gross income from sources within country shown", I entered either the gross dividends from foreign companies (on individual stocks) or the "Foreign Income After QDI Adj." reported by Mutual Funds. Form 1116 computes a credit of $93. I expect the $366 credit. In general terms, Form 1116 computes the tax credit using the formula Foreign income/Gross income x Taxes on Form 1040, Line 44. [The gross Income is before Capital Loss Carryover.] Am I doing something wrong? Or that is generally the case (i.e. Form 1116 foreign tax credit is less that actual foreign taxes paid)? Or is it just the combination of factors in my case? If I am not doing something wrong; then I should reduce the tax credits to $300 and take the $300 credit without doing F1116. How do I get Turbotax to do that? TIA
>
>
>
>
>
>
>
>
>