Form 1116 Foreign Tax Credit Form - Worksheet Bug - Unable to E-File

[LinaJ2020]

The issue has been submitted and is currently under investigation.  If you would like to receive an update for the progress, click on the following link to get notified:

Form 1116 reject error

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  

[d__wood]

Also getting this error. 

Proposed fix in the above link from 30 Mar did not resolve the issue.

[LinaJ2020]

If you did not pay any foreign taxes in 2020, you can simply remove the Form 1116 from the program.  Here are the steps:

In TurboTax online,

• Sign into your account, select Please pick up where you left off
• From the left menu, select Tax Tools, click on the drop down arrow
• Select Tools
• Under Other helpful links, choose Delete a form
• Select Delete next to Form 1116 and Continue with My Return

If you have paid foreign taxes and filed Form 1116 in the past, some of the information got carried over to your 2020 program.   If you did not pay any foreign taxes in 2020, you do not need to file Form 1116.  Simply remove it so you can e-file.

As long as you filed a Form 1116 in the initial year when you claimed the foreign tax credit and carried forward any unused credit balance to future tax years, you do not have to file a Form 1116 every year just to do the carryforward if you do not have any foreign tax credit to claim. 

@ParkNYC

[jaysee]

I had no foreign taxes paid nor accrued, but TurboTax wouldn't e-file my return until I completed Form 1116.  So, I checked the "Paid" box & entered zeroes for all the amounts on the 1116, then tried to e-file again.  It worked.  I e-filed without further difficulty.

[LadyJC]

I'm also experiencing this issue.  Is this bug being fixed? 

[DaveF1006]

It depends. My question is why are you filing a form 1116 if you did not pay foreign taxes? if you did not pay foreign taxes, delete form 1116. 

[d__wood]

I don't know the answer to this. It's why I use TT - to tell me what forms I do and don't need to file.

I did pay foreign tax in 2019 so assume it's some sort of carryover from that.

[cnbrefund]

I filed 3 times tonight only to get rejected for the 1116 form 3 times.  I did pay foreign taxes, so I have to file it.  I have run the checker and even went into the forms mode to verify there were no errors the 2nd and 3rd submittal. Is there still a software glitch?

[boogiebad007]

I believe there are multiple bugs in the 1116 Worksheet and the 1116 itself.  I have e-filed my 2020 Form1040 twice.  The first time i fixed the missing entry on the 1116 that TT said was missing,  Filed the second time rejected, again 1116 error.  This time no error was noted.  I have run final review, and Errors multiple times, each time they come back as "Return has no Errors" or Return is ready to E-file.  The same think happened last year, but then i was also using TT Professional and with the same entries i was able to e-file.  So i do believe the 1116 has multiple bugs in the Turbo Tax Deluxe Edition

[boogiebad007]

Hard to believe, and thanks go to all of you who suggested a fix for entering the Foreign Tax Credit in TT Deluxe Edition.  I deleted the Form 1099 Div. entry form and created a new form and entered all the entries manually.  I then efiled the return and to my surprise and delight the return was accepted by the IRS.  Crazy workaround, but it worked. 

the need for a similar workaround arose last year on the form to enter 529 withdraws for school. 

if only TT would admit the problem and share at least the workarounds, if they cannot fix, our lives would be must better.

[aminhari]

Any updates on a solution here? I don't recall ever filling out this form and I only had a < $5 in foreign tax paid per the 1099-div for 2020. I'm not really sure what to do. 

[cnbrefund]

I was able to walk through things with a Turbo Tax CPA, and found that changing various to the specific dates was probably the most helpful thing.  The IRS now prefers when specific dates are used rather than the word various.

Hopefully this helps fix the issue for you.  If not, the CPA I talked to was very professional and user friendly.

[aminhari]

@cnbrefund - sorry, i'm not sure I understand. What dates are you referring to? Where do you change them? 

[boogiebad007]

i previously posted that what worked for me and was simple, was to delete the Form 1099-DIV entry form and then enter the info manually.  I efiled, and the IRS accepted the return as filed.  i had tried changing the original form to using specific countries, specific dates, using RIC, using Various, known of those worked for me.

[BobG2021]

I too have the same problem with my TT return.  I have rejected twice, both times because of Schedule 1116 not being completed correctly.  The user interface on TT is horrible and confusing.  I have passive income reported from multiple countries that I auto-downloaded thru my financial institution.  I have tried to fix the errors, but TT does not provide clear guidance.  I too believe there is a glitch in Schedule 1116 or their user interface is providing poor guidance especially when the IRS rejects the filing. 

This is embarrassing because I am a CPA.

If TT advisors or TT CPA are there please HELP!!!!

Thank you.