SLN
Level 1
10-12-2022
06:16 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
When excluding income, the standard deduction need to be modified and we need to reduce the foreign tax credit for the excluded income as per Publication1321. On form 1116 was showing the adjusted standard deduction instead of the full standard deduction and then the % allocation. It was calculating the allocation based on the adjusted standard deduction. Pro connect told me to go and put the full std deduction in Foreign Tax Credit (1116) Itemized deductions not directly allocable [override] so it allocates the % considering the full std deduction. It is showing a critical diagnostics, saying for e-file the standard deduction cannot be modified. I contacted pro connect and they say I can't e-file. Do you know another way around it?