I have entered foreign tax amount from 1099INT and selected to Take a Credit but when return is reviewed, error message 'Foreign tax Sch A box or Form 1116 copy should be entered. Return to the place where this was entered to correct the entry.' A form 1099DIV worksheet is presented but I have no way to interact with it other than Sch A checkbox. No 1116 should be required anyway because of amount of credit, only $119, is below the amount required for form 1116. How do I resolve this error?
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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.
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.
I have had a related problem the last two years, except my foreign taxes paid are greater than $400 and a Form 1116 is NOT generated. The worksheet erroneously subtracts out my my credit. I had to override it for two years , create my own Form 1116, and then file my own return rather than electronically, since TT won't file with an override. I do not want to have to do that this year. Is there a way to force the program to work correctly if this has not been fixed so that I can file electronically.
The program will not allow forms to be filed before the IRS has approved them. The program works perfectly once the forms are approved and the software is updated. The form 1116 is not a high priority form for the IRS. The IRS is expecting to have it done by January 28 this year. IF they are on time, we should have it the next day at the latest. You can track the IRS and form 1116 here. If you can wait until the forms are IRS approved and in the program, you will be able to file electronically.
Thanks. I think I understand your reasoning for no1116 being produced, but that doesn’t explain why the program itself subtracted out my entire foreign taxes paid erroneously on the worksheet. That is why no 1116 was produced. The second year, the program also made an error within the worksheet (a different one) which triggered no 1116. I filed both years myself and the IRS accepted my calculations and Form 1116.
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