Form 1116 - completing it a problem

[Turb21Tax--]

I shouldn't have to complete Form 1116 & but Turbo Tax is stating that I must file a Form 1116.  I meet the exception for not having to file Form 1116. What can you do to correct this?

[AnnetteB6]

If you meet an exception to actually having to file Form 1116 in order to claim a credit for foreign taxes paid, you can still go through the Foreign Tax section of your return to complete the required information.  You will see a message on the screen about Form 1116 not being finalized yet, but it is unclear whether that will prevent you from filing your return since the actual form will not be included as part of your return.

If you have attempted to electronically file your return and it has been rejected due to Form 1116, then your only alternative is to either wait until the form is available or remove the foreign tax paid (thus removing the credit) from your return.  

For reference, take a look at the following TurboTax help article to see when Form 1116 is expected to be available:

IRS forms availability table for TurboTax individual (personal) tax products

@Turb21Tax--

[chiefac]

Thanks for the information. Does this information apply to Turbo Tax Deluxe version? For the life of me I can

not find My Account any where in the upper right corner. 

[DawnC]

Yes, the foreign income and foreign tax information applies to TurboTax Deluxe as well.    U.S. citizens and resident aliens must report the income they earn outside of the U.S. annually. There are, however, certain credits and exclusions you can apply to significantly reduce or eliminate your owed taxes.   To avoid double taxation on Americans living abroad, the IRS gives them a choice:

• Deduct their foreign taxes on Schedule A, like other common deductions.
• Use Form 1116 to claim the Foreign Tax Credit (FTC) and subtract the taxes they paid to another country from whatever they owe the IRS. 
• Use Form 2555 to claim the Foreign Earned-Income Exclusion (FEIE), which allows those who qualify to exclude some or all of their foreign-earned income from their U.S. taxes.

In most cases, choosing the FTC will reduce your U.S. tax liability the most.  Most of the time, if you paid less than $300 ($600 if married filing jointly) in total foreign taxes, you don't even need to complete Form 1116 to get the credit.  Election To Claim the Foreign Tax Credit Without Filing Form 1116 

Federal Individual Form Availability 

@chiefac