Do I Need to File Form 1116

[rbirenbaum]

I am using TurboTax Deluxe.  I have $2,158 in foreign tax carryovers from previous years.  For tax year 2021, it is more advantageous for me to deduct my foreign taxes on Schedule A.  However, TurboTax is telling me that I need to wait for Form 1116 Schedule B and will only be able to file by mail.  My questions are:

1. If I'm deducting vs. taking a credit, why do I have to file Form 1116?
2. If the answer to 1 above is I don't need to file Form 1116, can I just delete that form from my tax return and e-file?  Will TurboTax let me do that?
3. If I delete Form 1116, can I used foreign tax carryovers in future years by entering the amounts manually on Form 1116?  In other words, I don't want to lose these carryover credits just because I don't file Form 1116 this year.

Thank you.

[Mike9241 · Accepted solution]

if you don't want to lose the carryforwards, you'll have to include form 1116 and schedule B.

if you take the deduction for 2021 no carryover from prior years may be use as part of the current year deduction.