I was getting rejected for E-File. I received the message:
"/Return/ReturnData/IRS1116/ForeignTaxCreditSource/USTaxWithheldOnDividendAmt - Data in the return is missing or invalid".
Thanks to the TurboTax Community (and no thanks to TurboTax), I was able to resolve the issue and consequently E-File.
First, I must say that I am very, very disappointed with TurboTax. They should have jumped on this problem and immediately fixed it. We are paying for the program (I have TurboTax Premier) to complete our taxes efficiently, competently and without error and this includes the ability to E-File. When I phoned in to TurboTax about the E-File rejection, I was told that the Return must now be mailed if submitting a Form 1116 – this is an unacceptable (and incorrect) answer ! Also, I should not have to waste many hours of my time seeking a solution to a problem that should have been quickly resolved by TurboTax.
In summary, as many in the TurboTax Community have pointed out, the problem appears to result from an IRS change that rejects the use of “various” for the date input into the Form 1116. However, in my case, by going into Forms mode and changing the date by simply inputting 12/31/2020 into Form 1116 (via 1116 Comp Wks) did not resolve the E-File rejection. As basically mentioned in OC59 and Debbie412’s comments, it may be necessary for the entire Form 1116 to be “reset” for the date change to be properly registered in the program. To do this “reset”, I basically followed the procedure mentioned in Debbie412’s comment and it did work for me. Below for your information is my experience with the “reset” and I hope that it may help you:
Before starting, I suggest you print a copy of your “Foreign Tax Credit Carryover Statement”. For the rest, be in Step By Step mode, then choose Deductions & Credits > Foreign Taxes. When asked “Do you want the Deduction or Credit”, select “Itemize Deduction” rather than “Take a Credit”. Continue through the section and when completed, again choose Deduction & Credits, but this time select “Take a Credit” rather than “Itemize Deduction”. This appears to reset the Form 1116 and one should therefore continue through the steps of this section and make any appropriate inputs. Also, due to the “reset”, this also may involve having to re-input historical Foreign Tax Credit carry-over data which, at least in my case, was lost during the reset. Therefore, you should have your previously printed copy of the “Foreign Tax Credit Carryover Statement” handy to re-input the data.
I found that by going into Forms mode and looking at the “1116 Comp Wks”, that the date for Country A was now blank. However, I did not enter anything here. Instead, when running the Error Check afterwards, TurboTax generated an error asking for “F1116 (C1) Foreign Tax Credit Comp Wks – Date must be entered”. Here I entered the date “12/31/2021” rather than “various”. Afterwards E-filing worked and was accepted by the IRS. Prior to the E-File, I did closely review my Tax Return Forms (e.g. FTC carryovers, AMT Carryovers) to ensure that nothing else changed with this reset.
I hope this helps and again thanks to the TurboTax Community.
