5752

ref.#5752

And what does it "say"....

None of us (volunteers) have these memorized.

An adjustment to the income reported on Line 1 of Form 1116 may be necessary if the taxpayer has foreign source capital gains and loss. Please refer to the Form 1116 instructions.

In my 1040, the TP does not have foreign cap gains or losses. And there is an adjustment being made. See snip.

Does someone want to read the instructions for me?  @abctax55 @KYCPA100 

Qualified dividends are subject to a lower rate so there's an adjustment for the FTC math.   

That's the way I've always understood it, but I've never read the instructions <w>.

That's why the brokerage statements (from some companies....) are a million pages long and SOME (RBC?) don't provide a summation of the foreign income, or the  breakdown of foreign dividends, qualified dividends, capital gain dividends.

And for OP, if there are no foreign capital gains, ignore the diagnostic.

@strongsilence the adjustment applies to long-term capital gains and qualified dividends because both are taxed at lower rates. I have read the instructions when I need to, but your snippet looks fine.