F1116 error on line 3e

Forum|Forum|3 years ago
March 30, 2023
1 reply
17 views

Hi,

I have an error on F1116 Foreign Income,its says line 3e should be greater that foreign income on line1.

I do this every year for my clients,however, this year she shows only social security ( 2,500) and foreign income benefits. No other income she has and that is why the line 3e is less than foreign income.

I don't know what will be the best solution to it. Try few things nothing works. i cant efile her taxes.

She wants her F1116 with her F 1040.

Please help

Marta

ProSeries Basic

This topic has been closed for replies.

itonewbie

Level 15

Not conceivable how that is possible. Could you please provide some numbers?

What exactly is foreign income benefits?

Need more info especially since treaty provisions often come into play.

---------------------------------------------------------------------------------Still an AllStar

M

MartamAuthor

Level 3

Hi,

Yes is real.I ma doing foreign incomes last 8 years & did not have such as case.

Foreign amount is for foreign pension, passive income. Client have only soc.sec benefits and that foreign pension.,no other income. No treaty apply. Small amounts foreign pension is 7,000 and soc sec is 2,500.Therefore on the F1116 L3e says is too small to foreign income line 1.I can not modify it either:(

The client have carry over amounts from previous years so I don't want to loose those either.

Appreciate any advise.

itonewbie

Level 15

You are still not giving us the crucial details...

If all your client had was $9,500 of income, there wouldn't be a filing requirement to start with.

Assuming all $9,500 is in G/L, which is unusual for pension, even if your client had other income, there is no reason why Line 3e, which is gross income from all sources, could be smaller than Line 1a, which is gross income from within the foreign country. By design and mathematically, gross income from all source just has to be larger than (or equal to, assuming the taxpayer has US-source income,) that of foreign countries.

My only guess is that you had overriden or adjusted the line for all sources. Suggest that you check your input under Credits > Foreign Tax Credit (1116). On the input screen, click on the link for Gen. Info/Elections in the top-right corner, and see if you have any input on the line for Gross income from all sources [Adjust].

If not, please come back with more specific info about your client's income, the baskets these fall under, and the amounts you entered vs what you see on the return.

---------------------------------------------------------------------------------Still an AllStar

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