Discussion ongoing
1116 and foreign income adjustment
Read the F1116 instructions.
How to make adjustments.
To adjust your foreign source qualified dividends or capital gain distributions, multiply your foreign source qualified dividends or capital gain distributions in each separate category by 0.4054 if the foreign source qualified dividends or capital gain distributions are taxed at a rate of 15%, and by 0.5405 if they are taxed at a 20% rate. Include the results on line 1a of the applicable Form 1116.
But in my 1040 the adjustment is about 64%. And that amount does not appear in the instructions.
Please add a worksheet showing this calculation.
