cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 4

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

I know I lot of tax code changes have taken place, especially this year, but don't find anywhere that states Form 1116 must be filled out no matter what this year.  IRS still states if MFJ and foreign tax credits <$600, then no need for Form 1116, just as in recent years.

TT is seemingly stopping me here to fill out a link to Form 1116 or else change to deduct foreign taxes on Sch A, which loses the foreign tax credit.

The software already asked during deductions entry whether I was able and wanted to choose to take a deduction or take the credit.  I chose to take the credit since I was eligible, so it this just a glitch/bug?

1 Best answer

Accepted Solutions
Level 9

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

This is a software error and here is the workaround. If you are using the desktop version, use “A”; if using the on-line version, use  “B”

(A)
Bring up Form 1040 Wks. and make sure the credit is posted on line 48. If it is then bring up the
1099-DIV Worksheet.  In Box 7, double click on the f1116 icon.

Another box will appear. You will see the phrase “Form 1116 (COPY 1)”.  Click on that and it will be highlighted.  Then click on the “LINK” button.

That box will disappear and you will see the phrase “COPY 1” inside the f1116 icon.

Then recheck Form 1040 Wks. and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.

(B)
It is assumed you are using the exemption and the credit is posted on line 48 of the 1040 Wks.  Go to the Foreign Tax Credit interview.  We will be going into the interview just far enough so TT will Link to COPY 1 of a f1116 although no f1116 will actually be generated.  Here are the headers and the responses.

1. Foreign Tax Credit
             Continue
2. Tell Us About Your Foreign Taxes
             Check the “None of these apply.”
              Make sure the other 2 are blank.
               Continue
3. Foreign Taxes
                Continue
4. Do You Want the Deduction or the Credit?
               Take a Credit.
5. Reporting Foreign Taxes Paid
                 Continue
6. Where Did You Receive Dividend Income From?
                If already selected, Continue, otherwise select any one. It doesn’t matter as it is not needed.
7.  Income From Foreign Countries
              “Report Income.”
8. Report Foreign Tax Paid to XXXX.
             Check under “Select”.
             Continue.
9. Foreign Source Income
             If there is an entry, ignore it otherwise type in any arbitrary amount. It is only a filler and not needed.
              Continue.
10. Reporting Foreign Taxes Paid.
             At this point, TT should have inserted the Link and cleared the error without generating a f1116. We want to     vacate the interview now, so I suggest selecting “Smart Check” to see if the error is cleared.  If so, verify the     credit is still on line 48 of the 1040 Wks. and you are done.                      


8 Replies
Level 9

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

This is a software error and here is the workaround. If you are using the desktop version, use “A”; if using the on-line version, use  “B”

(A)
Bring up Form 1040 Wks. and make sure the credit is posted on line 48. If it is then bring up the
1099-DIV Worksheet.  In Box 7, double click on the f1116 icon.

Another box will appear. You will see the phrase “Form 1116 (COPY 1)”.  Click on that and it will be highlighted.  Then click on the “LINK” button.

That box will disappear and you will see the phrase “COPY 1” inside the f1116 icon.

Then recheck Form 1040 Wks. and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.

(B)
It is assumed you are using the exemption and the credit is posted on line 48 of the 1040 Wks.  Go to the Foreign Tax Credit interview.  We will be going into the interview just far enough so TT will Link to COPY 1 of a f1116 although no f1116 will actually be generated.  Here are the headers and the responses.

1. Foreign Tax Credit
             Continue
2. Tell Us About Your Foreign Taxes
             Check the “None of these apply.”
              Make sure the other 2 are blank.
               Continue
3. Foreign Taxes
                Continue
4. Do You Want the Deduction or the Credit?
               Take a Credit.
5. Reporting Foreign Taxes Paid
                 Continue
6. Where Did You Receive Dividend Income From?
                If already selected, Continue, otherwise select any one. It doesn’t matter as it is not needed.
7.  Income From Foreign Countries
              “Report Income.”
8. Report Foreign Tax Paid to XXXX.
             Check under “Select”.
             Continue.
9. Foreign Source Income
             If there is an entry, ignore it otherwise type in any arbitrary amount. It is only a filler and not needed.
              Continue.
10. Reporting Foreign Taxes Paid.
             At this point, TT should have inserted the Link and cleared the error without generating a f1116. We want to     vacate the interview now, so I suggest selecting “Smart Check” to see if the error is cleared.  If so, verify the     credit is still on line 48 of the 1040 Wks. and you are done.                      


Level 4

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

Thank you rogge1722!!!
Level 1

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

I have followed the A now turbotax is asking "Schedule B -- From 1099-DIV Box 7 column should have a value for bank name" Here is what if gives me No entry, Form 1116 column A,Form 1116 column B, and Form 1116 column C. I did try No entry but that still gave the same error.
Level 1

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

I followed this workaround successfully 2019/2/11 .
Level 9

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

Try going thru the workaround again using method "B" and see if that works.
Level 1

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

Thank you Rogge1722 using method "B" worked
Level 1

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

B worked for me as well, however the first time I tried at step 10 I continued finalizing that portion of the interview, which failed.  I misinterpreted that portion of step 10 as a suggestion to not finalize the interview rather than a requirement to not finalize the interview and a suggestion that the easiest way to do that is to click smart check.
Level 1

Federal Smart Check finds 1099-DIV Worksheet issues. Has to do with Box 7 foreign tax paid, but I previously already chose "Take tax credit"?

Thx rogge1722.  Just FYI for those who follow A and you first don't see ANY amount in Line 48 of 1040 wks, and you are sure you entered the Box 7 data (i.e. Foreign Tax paid) from any 1099-DIVs ... then try this:
- go to forms and open each 1099-DIV worksheet where you are sure that you entered Box 7 data.
- if the 7a box is checked on that worksheet (which says "Check to deduct Foreign Taxes on Schedule A"), then uncheck it. Repeat -- UNCHECK it to get the credit.
- then go right underneath to 7b (on that same worksheet) and double click on the f1116 icon  .. and follow rogge1772's steps thereon.
- after each 1099-DIV worksheet is done, you can go to the 1040 wks and see line 48 increase with each DIV worksheet that you go thru with Box 7 data.