Foreign Tax Credit TT error: How to fix it?

[aarondwasserman]

TURBO TAX: PLEASE FIX FOR WEB. THIS HAPPENS EVERY YEAR AND I DO NOT UNDERSTAND WHY YOU CANNOT ALLOW THE DOUBLE CLICK TO WORK ON THE WEB!!!!!!!!!!

[rogge1722]

Here is an update on this issue.

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.                      

[dan-heumann]

rogge1722, thanks so much for the help, looks like it works!

[keh]

You're a genius rogge1722! 🙂  B worked _perfectly_ just as you outlined. I had thought something like that might work but would have just been poking around in the dark. Thanks! I can file now.

[jfitz9999]

Ditto;  Worked using online premier version;  Very happy after becoming frustrated.  I just filed. Thanks!

[erica-champion]

Thanks so much! This was much faster than calling customer service.

[rlmjam-martin]

I had an 1116 problem also that I fixed for a mere $17.   I have the physical media version of TT.  My return was rejected multiple times for "residence foreign country code."  

In looking into this, I found that IRS has a lot of peculiarities about 1116s, such as the largest claim has to be listed first.  Neither the step-by-step nor the final review picked these up, and you only learn them by clicking on the links in the program and reading the detailed documentation.

I ended up with two 1116s.  Copy two was required because its single entry, from a partnership K-1, concerned taxes accrued, not paid, and I had learned through trial and error that accrued and paid taxes are incompatible on a the same 1116.  

That copy two entry was for $17 in taxes, and I had over $1,000 in other foreign credits.  I said the heck with it, let's see what happens, so I went back into the program and  removed the report of those taxes.   That cleared 1116 number two.  I resubmitted the return, and it was accepted.

It was only $17 this year, but this is no way to do things long term.  Better guidance from TT is essential.

[reach694ab-]

Literally everything done in TT return except the 1116 is total fiasco for tax credit. Abandoning ship, going to Tax act. Otherwise was quite happy and planning to use TT for rest of my life. All that business flush it down the toiled because you won't fix this known issue.

[rogge1722]

I don't have TY2018 installed yet, but the following is from TY2017 which might solve the problem.

To ensure a clean start, delete f1116.

If you are asked to fill out form 1116 and you don’t need to, here is a
  technique to override it. Go to the foreign tax credit interview and when you
start, here are the screen headers and the responses.       
1. Foreign tax credit
              Continue
2. Tell us about your foreign taxes.
           Skip the foreign tax credit.
3.  Foreign Taxes
             Continue
TT will exit the interview and the credit should appear on line 48 of the 1040.

[yomero1]

rogge1711, Many thanks for your prompt suggestion. Unfortunately, unlike TY2017 (when your solution worked) it did not work for current year.  TT TY2018 did not ask me to fill f1116 and appropriately shows the Tax credit on line 48 on the 1040, however, the error listed above continues to occur during "Smart Check". I guess, it is too early and I will have to wait for others to encounter same problem before a fix is offered. Could this be related to the fact that the final form 8960 (Net Investment Income) is will not be available until Jan 31?

[jeffecohen]

having the same exact problem. am waiting to see if form 8960 fixes it.

[dan-heumann]

I tried this technique on TY2018 TT with no luck either.

[jfitz9999]

Ditto---I tried this technique on TY2018 TT with no luck either.

[emompoint53]

I  deleted the company who sent the 1099DIV for only $0.58. But I can't remove the form 1116

[emompoint53]

Thanks.