Review issue - Foreign tax Sch A box or Form 1116 copy should be entered. I have selected credit properly and 1099-DIV has info correct, no 1116 needed (MFJ < $600)

[rogge1722]

Here is an update on this issue.

This is a software error and here is the workaround. If you are using the desktop version, use “A”; if using the on-line version, use  “B”

(A)
Bring up Form 1040 Wks. and make sure the credit is posted on line 48. If it is then bring up the
1099-DIV Worksheet.  In Box 7, double click on the f1116 icon.

Another box will appear. You will see the phrase “Form 1116 (COPY 1)”.  Click on that and it will be highlighted.  Then click on the “LINK” button.

That box will disappear and you will see the phrase “COPY 1” inside the f1116 icon.

Then recheck Form 1040 Wks. and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.

(B)
It is assumed you are using the exemption and the credit is posted on line 48 of the 1040 Wks.  Go to the Foreign Tax Credit interview.  We will be going into the interview just far enough so TT will Link to COPY 1 of a f1116 although no f1116 will actually be generated.  Here are the headers and the responses.

1. Foreign Tax Credit
             Continue
2. Tell Us About Your Foreign Taxes
             Check the “None of these apply.”
              Make sure the other 2 are blank.
               Continue
3. Foreign Taxes
                Continue
4. Do You Want the Deduction or the Credit?
               Take a Credit.
5. Reporting Foreign Taxes Paid
                 Continue
6. Where Did You Receive Dividend Income From?
                If already selected, Continue, otherwise select any one. It doesn’t matter as it is not needed.
7.  Income From Foreign Countries
              “Report Income.”
8. Report Foreign Tax Paid to XXXX.
             Check under “Select”.
             Continue.
9. Foreign Source Income
             If there is an entry, ignore it otherwise type in any arbitrary amount. It is only a filler and not needed.
              Continue.
10. Reporting Foreign Taxes Paid.
             At this point, TT should have inserted the Link and cleared the error without generating a f1116. We want to     vacate the interview now, so I suggest selecting “Smart Check” to see if the error is cleared.  If so, verify the     credit is still on line 48 of the 1040 Wks. and you are done.                      

[rogge1722]

This is a software error and here is the workaround.

Bring up Form 1040 and make sure the credit is posted on line 48. If it is then bring up the
1099-DIV Worksheet.  In Box 7, double click on the f1116 icon.

Another box will appear. You will see the phrase “Form 1116 (COPY 1)”.  Click on that and it will be highlighted.  Then click on the “LINK” button.

That box will disappear and you will see the phrase “COPY 1” inside the f1116 icon.

Then recheck Form 1040 and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.

[nikil-kirtikar]

Thank you for the above, Form 1040 shows the credit in line 48 but there is no f1116 icon next to box 7 of 1099-DIV - can you clarify where I can find that icon to follow the rest of your workaround?

[rogge1722]

I'm referring to the 1099-DIV Worksheet, not the 1099-DIV itself.

[jrfriedman]

I have the same problem.  I'm using turbotax premier online.  How do I access the worksheet?  I only see the 1099-div but can't seem to access the worksheet.

[fedorz]

TurboTax Desktop - same problem in 2022 (doing taxes for 2021).

There is no line 48 on the 1040 Wks, so can't apply your workaround for this software error.

[fedorz]

I have redone the Foreign Tax Credits section via TurboTax Desktop and the error went away.

[stmichael6]

I am still having this problem in 2024! The foreign taxes I paid on the dividends was $23. I don't want to mess around with this f1116 workaround because I already have foreign income from wages reported on a 1116 and I tried entering a 1116 for these taxes paid on a the dividends and I couldn't submit my taxes. I have gone through and deleted and re-entered the 1099-DIV to try to get TT to realize it doesn't need a 1116 for this....is there something I'm missing? What is schedule A? where do I find it in the online TT?