2021 Form 1116 Schedule B (carryovers) can't efile

[faujong]

Will do. Thank you for your help. I don't plan to e-File until maybe 1-2 weeks from now.

[mgb1973]

I use TT Home & Business CD for a MAC. I have been tracking this subject since late February and updated TT March 3 and every time I made additions or reviewed entries to access my  not yet filed return. Schedule B to Form 1116 was uploaded on March 11th. I continued to wait until March 22 when I filed my return. My return was accepted the same day. I always made a duplicate copy of  my return in case my return was reject ed and I wished to forego using any of my FTC carry forward from 2020. FTC carry forwards are available for 10 years. In addition I have FTC’s from RIC’s and multiple foreign countries albeit from one category. 

There was no way that I was going to mail my return with the IRS having a backlog of 20MM unprocessed returns for 2020.

In addition, I filed an amended 2019 return in early April 2021 carrying back FTC and it took the IRS until the very end of February 2022 (11 months)  to send me a refund.

The FTC subject is complex. The TT interview section is not always  very clear and I have had to revert to irs.gov and read the instructions to Form 1116 and Schedule B (issued by the IRS in December 2021) thereto.

Does any know how TT arrives at "Gross Income from All Sources" on the Form 1116. TT indicates it is from a Smart Sheet. I cannot find that Smart Sheet and reconcile to my AGI.

[mgb1973]

I use TT Home & Business CD for a MAC. I have been tracking this subject since late February and updated TT March 3 and every time I made additions or reviewed entries to access my  not yet filed return. Schedule B to Form 1116 was uploaded on March 11th. I continued to wait until March 22 when I filed my return. My return was accepted the same day. I always made a duplicate copy of  my return in case my return was reject ed and I wished to forego using any of my FTC carry forward from 2020. FTC carry forwards are available for 10 years. In addition I have FTC’s from RIC’s and multiple foreign countries albeit from one category. 

There was no way that I was going to mail my return with the IRS having a backlog of 20MM unprocessed returns for 2020.

In addition, I filed an amended 2019 return in early April 2021 carrying back FTC and it took the IRS until the very end of February 2022 (11 months)  to send me a refund.

The FTC subject is complex. The TT interview section is not always  very clear and I have had to revert to irs.gov and read the instructions to Form 1116 and Schedule B (issued by the IRS in December 2021) thereto.

TT performance and the customer service representatives did a terrible job this year! I have not had great success with them in the past either. 

Does any know how TT arrives at "Gross Income from All Sources" on the Form 1116. TT indicates it is from a Smart Sheet. I cannot find that Smart Sheet and reconcile to my AGI.

[SCswede]

I had the same question about Gross Income from all sources and as usual logic doesn't always apply to the IRS. I would have thought you would add back things like non-taxable state refunds, non-dividend distributions etc. However I talked with a TT Tax Expert and contrary to the many TT representatives that other posters have found terrible to deal with, this person was excellent. Knowledgeable and committed to resolving questions and issues, with many years of tax experience, he explained the IRS definition of Gross Proceeds are taxable items and in my case it meant adding back all ST and LT Capital losses. While time consuming adding up all of my individual Capital losses transactions from my investment accounts, I was able to reconcile the $11.1K difference between my AGI on the 1040 and line 3e on Form 1116. Hope this helps.

[mgb1973]

Thanks for the information. In my case one heck of manual task by reviewing Form 1099 B’s.

What about capital loss carry forwards, the difference in taxable SS benefits and cost basis of gross pension and IRS distributions,  tax exempt interest and dividends, 20% exclusion from QBI?

[MarilynG1]

Click this link for more info on Calculation of Gross Income from All Sources. 

[BlueSkye]

I had the same exact problem as you detailed @fa123. One IRS rejection before the 3/18 software update, and another just after the 3/18 update. TurboTax Customer Support person was not at all helpful.

Today, after browsing through this thread, I tried changing the foreign tax credit choice to an income deduction, went through the steps, saw a bigger amount of taxes due, then switched back to foreign tax credit, went through the steps, saw the new taxes due to be the same as before this workaround (good thing), and filed the return. IRS accepted this time in 15 minutes. Try this and it might work for your case too. Good luck.

[unmesh59]

Someone posted about the ease of filing taxes in Canada. In India, you file your taxes on a government run portal which prepopulates your return with all the information they have from the equivalent of W2's, 1099's and the like given to them by employers and financial institutions so you have to only fill in the missing information (if any).

[CanTex]

Yep, so simple. India’s must be as simple as Canada’s. All the basic information is picked up from the previous year’s return, I enter two pieces of info manually, review and e-file. Of course, by design the U.S. tax system regarding foreign credits is purposely complicated - it’s nowhere near one-for-one, you only offset a portion of the overseas taxes you paid. (Bad memories of when I first encountered 1116 before I got a computer and a tax program. Could they make it anymore complicated? Wait! They did!)

[thorvost]

Has anybody successfully e-filed a return with Form 1116/Schedule B using the Windows version of Turbo Tax Home & Business?

[GarryDG]

Although this is not a reply to the recent question from "thorvost", I am bidding adieu to the forum having asked many weeks ago as to the status of e-filing form 1116 which resulted in a deluge of e-mails (interesting, none the less).  So here are my parting thoughts:

Using Windows 10 and TT Premier,

I e-filed on March 14 both fed and Montana and received fed refund today.  (Owed Montana some cash)

I would recommend that the operating system and TT version be noted in communications (may identify issues with certain platforms).

Also, circumstances that may have aggravated the 1116 debacle:  As this was my first foray with form 1116, I had no carryovers, nor did I have to mail in previous year's 1040.  Thus, I think I avoided the problems experienced by so many.

I would hope that if the IRS does not further mess with reporting requirement, that TT should be able to have addressed and fixed the problems encountered and that next year's filing will proceed without incident.  So, my wife says I'm an optimist.

[TrishMarie]

For those still trying to e-file tax returns, try to go back to pages 32 to 36 on this thread.  There are explicit instructions that have to be followed.  Hope this helps.

[DaveF1006]

All of the forms have been updated and you should be able to efile Form 1116 Schedule B.  Click on check for updates on the online tab of your program and then see if you are able to efile your return.

@thorvost

[faujong]

@DaveF1006 With the latest update, do we need use the trick to change from Credit to Deduction, and back to Credit again to successfully e-File ?

[thorvost]

Nope, still not working. After updating the program (version number is now 021.000.543), I went into the e-file section and saved a PDF of the return. As before, the generated PDF contained Form 1116/Schedule B. However, after pressing the button to do the filing, I am still getting the same error "We can't e-file your return because we are unable to locate the attachment at / attachment/Form1166ScheduleB.pdf ...".

@ DaveF1006