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New Member
posted Feb 1, 2021 12:12:58 PM

I’m trying to file for free, but it won’t let me because it’s telling me I have a foreign account when I have no foreign accounts

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10 Replies
Expert Alumni
Feb 1, 2021 1:32:38 PM

It might be that some information related to foreign account got carried over from last year.  If you do not have a foreign account in the year of 2020, you can simply remove a Form 8938 "Statement of Specified Foreign Financial Assets" from the program.  Here are the steps:

 

In TurboTax online,

  • Sign into your account, select Pick up where you left off
  • Select Tax Tools, click on the drop down arrow
  • Select Tools
  • Under Other helpful links, choose Delete a form
  • Select Delete next to the form 8938 and other worksheets about foreign account and Continue with My Return

 

A Form 8938 is used when you have specified foreign financial assets and the total value of all the foreign assets in which you have an interest is more than the appropriate reporting threshold.  For details, click here: https://www.irs.gov/instructions/i8938

New Member
Feb 1, 2021 3:22:39 PM

I’m already at the end trying to file so where can I find this form so I can delete it? There’s no option for me to click on where it says picked up where you left off

Expert Alumni
Feb 1, 2021 5:47:28 PM

To remove this from your return:

  1. Open or continue your return in TurboTax.
  2. In the Search box (upper right hand side) type schedule b foreign accounts and trusts.
  3. Click the Jump to link in the search results.
  4. Answer None of the above to Tell Us About Any Foreign Bank Accounts.
  5. Click Continue.
  6. Answer None of the above to Tell Us About Any Foreign Trusts.
  7. Click Continue.
  8. Answer No, I don’t have foreign financial assets to Foreign Financial Assets.
  9. Click Continue

@awyatt2984

Level 15
Feb 1, 2021 6:00:49 PM

@awyatt2984 

 

Start on the second step ... 

 

  • Select Tax Tools, click on the drop down arrow
  • Select Tools
  • Under Other helpful links, choose Delete a form
  • Select Delete next to the form 8938 and other worksheets about foreign account and Continue with My Return

Level 2
Jan 26, 2023 3:41:26 PM

All the solutions posted failed. 

There is no form 8938. 

There is a schedule B but deleting that form didn't help. 

After clearing and restarting 5 times, I give up.

Employee Tax Expert
Jan 26, 2023 5:19:02 PM

You state that you do have a sch B and you have no foreign assets. Can you please check any mutual funds you own to see if they have foreign assets? My guess is that you have some foreign dividend causing this situation. Just $1 in foreign dividends will create this issue. You can check your 1099-DIV for foreign income and tax paid.

See Instructions for 1099-DIV for more information on foreign income and taxes.

@PVM2 

Level 2
Jan 31, 2023 2:04:51 AM

I found my own solution.

It appears I was not checking off "no" for questions 7 & 8 under Foreign Assets section.

I overlooked it because it was not in the same format as the other question where the tab to choose yes or no was clearly posted at the bottom of the section. In the case of Foreign Assets the option to choose yes or no was available inside the question in the form of a little circle to fill in. Once I realized that, and filled in the "no" circle for each question in 7 & 8, my taxes were accepted and I wasn't asked to upgrade.

Expert Alumni
Jan 31, 2023 6:36:28 AM

TurboTax will ask you about foreign assets if you do not check NO to the questions asking if you had a foreign bank account and if you had a foreign trust.

 

If you entered the wrong answer, you will have to delete Schedule B for the questions to come up again.

 

To change the foreign bank account question:

 

  • Click Tax Tools in the left column,
  • Click Tools,
  • Select Delete a Form in the center,
  • Find and delete Schedule B.

Deleting Schedule B will delete any interest (1099-INT) and dividends (1099-DIV) on your return. If you received interest and dividends, put those amounts back in before filing. The foreign bank question will come up again. Be sure to say No this time.

New Member
Feb 7, 2023 9:19:52 AM

Hello, so I go to "other tax situations" and then I go to PREPARE A REPORT ON FOREIGN FINANCIAL ASSETS, I click NO, however, after I continue, it automatically populates to YES.  I have did this about 25 times and my "no" won't stick.  Any others?  Thank you.

Level 2
Feb 7, 2023 9:22:39 AM

Are you clicking "no" next to #7 and #8 found inside each section?