FreeTaxUSA correctly used the Worldwide Qualified Dividends and Capital Gains worksheet to calculate line 18 of form 1116 for my 2024 return. They also included the populated worksheet in the "Federal Tax Worksheets" pdf....
Two errors down, but their form 1116 is still wrong. On line 18, the form itself (not the instructions) cautions “If you figured your tax using the lower rates on qualified dividends or capital gains, see instructions.” They completely ignored this caution. This requires using the Worldwide Qualified Dividends and Capital Gains worksheet from the IRS instructions.
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In my case FreeTaxUSA has achieved the correct result with form 1116 the last four years, though I do need to manually calculate the adjustment.
Statistics: Posted by cacophony — Sat Mar 01, 2025 1:51 am