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Deductions & credits
Dear George,
The new Turbo Tax version with the Schedule B for foreign tax carryover generates an error for the 2018 number in my schedule that was merely imported from the previous Turbo Tax filings. I have talked to product support for the desktop version and a tax expert for the online version. None of them seems to understand why Turbo Tax is generating this error - I think it might be a system error and my last hope is the online community. You answered above to what might be the closest question and explicitly reference the update that now generates the error.
The error is:
Form 1116 - Foreign Tax Credit Comp Wks: Incoming C/O Utilized should not reduce the foreign taxes below 0.
The complaint governs a number from 2018 merely imported from last year's Turbo Tax. The number is negative because during 2018 I used up some of the foreign tax credit carried over from the previous year, so indeed the "utilized" exceeds that year's foreign taxes paid. The negative number calculated (I think correctly by previous Turbo Tax versions) implies that during 2018 I reduced the foreign tax carryover. Indeed, that's how the number ends up correctly on Schedule B Form 1116. The error warning only seems to govern the "Comp Wks" sheet which I think is Turbo Tax's own version - at least it looks slightly different from the one suggested by the IRS. Here the error appears by coloring in red a number in the 1116 Comp Wks. sheet. On the resulting schedule B Form 1116 everything looks correct.
I'd be very grateful for any help!
Many thanks!
It seems that the new Schedule B calculations might have a bug