Form 1116 won't calculate??

[bdalluge]

I'm having an issue getting Form 1116, Foreign Tax credit, to calculate. It calculates to line 8, which is supposed to carry to line 9.  Line 9 is blank and the rest of the form doesn't calculate. Any help would be appreciated? Information is entered just like it was in 2016 and I got a credit in 2016. Not sure what the issue is.

[rogge1722 · Accepted solution]

In Forms mode, in the left pane, is there a red mark next to f1116? If there is, click on it and it will appear in the right pane and the error will be highlighted in red.  If there are no errors, from other postings, the f1116 was deleted and by restarting the interview, cleared the failure..

[bdalluge]

There is a red mark and the field highlighted is the carryover to 2017. Since there is no carryover this should not be an issue.  I also see a red field on the Form 1116, line 9. This is a calculated field, so not sure how I am supposed to fix that either.  I tried to enter overrides to make the form calculate but it did nothing.

[bdalluge]

Finally just deleted the Form 1116. Obviously a bug in the system they need to fix.

[jllatimer]

I had success with deleting the Form 1116 also.

Details:

Copied all the data I had entered into the Form 1116 and related W/S to a temporary text file.  Deleted the offending Form 1116 (W/S was automatically deleted).   Created a new Form 1116.  LInked the Form 1116 to my 1099s and K-1s.  Entered the data I had saved in the temporary text file.  Line 8 now flows to line 9 and all calculations now appear under Part III and Schedule 3.  I have no idea why this works.

Magic?!

[dsiemro]

no such box on my forms

[dsiemro]

no such box on my forms

[Davo-1008]

See also “Form 1116 Errors in 2020 TT” posted by Davo-1008

I have found the Solution to Form 1116 Line 10 Carry Forward Tax Credit Errors.

In my case accumulated carry forward tax credits from prior years were primarily created due to higher taxes paid in a foreign country than were payable in the USA. Income and taxes paid in USA and a Foreign country( Australia) was properly apportioned between earned and passive income using the benefits of the existing double tax treaty.

The steps to this Form 1116 error solution to pick up Passive carry forward tax credits are:

a) Save a print copy of your existing Form 1116(s) so you can later copy and paste the content

b) Delete all your existing Form 1116 and related worksheets and explanations

c) Save your Turbo Tax File without any Form 1116

c) Use the Turbo Tax Program itself to create Form 1116 at Box 6 (b) of 1 of your Form 1099-INT

worksheets and label the top right box of this new Form 1116 “PASSIVE”.

d) Then repeat the linking to this same Passive Worksheet by double licking all your remaining Schedule B 1099 Interest worksheets for all bank accounts existing in foreign countries only.

e) Complete the Passive Foreign Tax Credit Computation Worksheet (labelled by Turbo Tax as “1116 Comp Worksheets” especially with detailed calculations shown in Part II ( q) interest where you double click the box in order to show you detailed calculation allocating the correct proportionate share of Net Taxes Paid ( Taxes Paid less tax Refunds received globally) compared to the source of income earned versus passive.

f) At the base of the Passive Foreign Tax Credit Computation Worksheet carefully fill in all your prior year foreign tax credit carryovers in the top 2 sections including the AMT amounts.

g) In 2020 the Passive Foreign Tax Credit Carryovers to 2021 should automatically fill themselves

h) Be sure the Form 1116 Passive Part II explanations are completed.

Conclusion: There should be no remaining Form 1116 errors in TurboTax especially at Line 10 and on the worksheet carry forward credit subtotals.