Question
medical expense and foreign tax credit
Picked up new client who has a wife in nursing home and thus has large medical expense. Client also has foreign dividends with foreign tax withheld on Form 1099-DIV. On his 2020 and 2021 Form s 1116 the prior CPA did not include the medical expenses as an allocation item on line 3a of the form. The insructions to line 3a on the form clearly states that medical expenses are treated as an allocable expense not related to foreign or US income. Am I missing some thing or did he do it wrong?
