topic Check this Entry - Form 1116 in Get your taxes done using TurboTax

Check this Entry - Form 1116

mgwinter — Fri, 26 Feb 2021 19:28:59 GMT

Check this Entry - Form 1116 (COPY1) -Foreign Tax Credit Comp Wks: Paid/Accrued boxes must be entered - how do I resolve this message?

Re: Check this Entry - Form 1116

MarilynG1 — Fri, 26 Feb 2021 20:52:29 GMT

If you have only one type of foreign income, you complete just one Form 1116. All Form 1116 filers must choose how they regard their income: on a cash basis or an accrual basis.

If your budget doesn't recognize income until you receive it, you use the cash method. Most individuals use the cash method.
If your budget records income when you earn it rather than when you get paid, you use the accrual method.

You should go back to your original foreign income entry to resolve the Form 1116 error.

Click this link for detailed info on Form 1116.

Re: Check this Entry - Form 1116

mgwinter — Fri, 26 Feb 2021 21:27:39 GMT

Thanks for the help! This information was imported and I suspect that's where the glitch was. I ended up just deleting the form out of TT and that seemed to resolve it as putting zero's in the blanks did not.

Re: Check this Entry - Form 1116

estamas142 — Fri, 04 Mar 2022 17:23:31 GMT

I have a foreign tax credit carry over from 2020. It looks like Form 1116 is ready, but not Form 1116 Schedule B which looks like now will be ready Mar 31. Also, it states that this form is nor supported for E filing. Can someone from Turbo Tax address this issue. Will I be able to file now by mail without this form or do I need to wait till Mar 31?

Re: Check this Entry - Form 1116

DaveF1006 — Fri, 04 Mar 2022 22:06:59 GMT

Yes, you may forgo reporting the foreign tax carryforward this year and report it next year, thus eliminating the need for Form 1116, Schedule B, for this year. If you report it next year, you will have a 8-year carryforward period to use it or lose it. When you report it next year, be sure to report in the year 2020. You will need to input this manually next year.

@estamas142

Re: Check this Entry - Form 1116

robon — Fri, 04 Mar 2022 22:10:59 GMT

TurboTax posted the updated Form. Today is March 4, 2022 and I was able to complete my taxes with the updated form.

Re: Check this Entry - Form 1116

estamas142 — Fri, 04 Mar 2022 22:11:04 GMT

Thanks Dave! That helps a lot. beach I would like to file ASAP. So, if I forego the foreign tax credit carry over this year, should I just delete form 1116 form from my taxes or just file without fixing the error that comes up when I review?

Re: Check this Entry - Form 1116

DaveF1006 — Fri, 04 Mar 2022 22:25:56 GMT

Yes, but you should delete in the program first where the entry was first made. Then delete the form if it is still there after deleting in the program. This way, you can be sure that the form or entry is gone for this year so you can file without any delays.

Re: Check this Entry - Form 1116

OldBob38 — Sun, 10 Apr 2022 21:27:30 GMT

I have the same error but have 2 separate foreign sources, 1 is a netherlands company but the other is my Schwab 1099 which just lists a small $58 foreign tax paid. This has never been a problem before and we've always taken the tax credit. I'm afraid I don't know what to do here.

Re: Check this Entry - Form 1116

DaveF1006 — Mon, 11 Apr 2022 16:17:48 GMT

To clarify, what is the amount of income for the Netherlands Company and is this also investment income?