How get “Gross income from all sources” on Foreign Tax Credit Form 1116, 3e?

Question

Hi. Does anyone know how to calculate the requested “Gross income from all sources” for the Foreign Tax Credit Form 1116 line 3e? (Sorry, the pop-up description is too vague for me!)

The answer that FreeTaxUSA automatically calculates matches my Line 1040 Line 9, Total Income.  However, that amount does not seem to include my Form 8962 PTC (Premium Tax Credit) for the AHA I received, on Form 8962, Part III, Line 29 (for $2,312); nor does it subtract QBID below*

Do I make these Adjustments to 1040 Line 9 to get Form 1116 Line 3e?

Do I need to ADD the PTC of $2312 to my Line 9 Total Income to get my "Gross income from all sources"?

Do I also need to subtract $14 (as Line 15, Form 8995, Qualified Business Income Deduction (QBID))?

Thank you!

(*which my tax preparer seemed to do last year. I am trying to reverse engineer his page, doing it on my own this year!) :-/

TaxMorgan · Answer

Hello Melba#SAU,

According to the IRS Instructions for Form 1116 (https://www.irs.gov/pub/irs-pdf/i1116.pdf),

"For lines 3d and 3e, gross income means the total of your gross receipts (reduced by cost of goods sold), total capital and ordinary gains (before subtracting any losses), and all other income (before subtracting any deductions)." (p 17)

It sounds like you do not make adjustments to your income on that line.

I would recommend contacting support directly through your account if you have additional questions so that we can assist you with account-specific information.