I'm getting the following message:
We Won't Be Able to E-file Your Return
You elected the simplified AMT Foreign Tax Credit limitation. Print the return and file by mail.
My situation is not much different from last year, and I was able to e-file then. What could be causing this, and is there a way to fix it?
I tried going back in the questions, but got to a page that says I used the simplified method last year and must continue to use it.
It seems quite odd that I would not be able to e-file in my situation.
I'm a "survivor" from that thread. Basically, if you use the simplified AMT Foreign Tax Credit, TurboTax cannot efile your taxes. The IRS made a field required this year, and TurboTax needs to update their software to handle it, but they have decided not to (and their support is mostly really terrible, rude, incompetent, and liars - they definitely won't be able to help you with this issue).
Before a recent update, TurboTax used to allow you to actually e-file with simplified AMT Foreign Tax Credit, but it'd get quickly rejected by the IRS because of that required field. After weeks of waiting and a 15+ page thread, their "solution" was to update the software to block you from e-filing. Seems pretty clear to me that they're not going to fix it.
According to the IRS, it sounds like they'll change it back next year; so hopefully it'll work again for 2021 taxes. Perhaps that's also why TurboTax decided not to bother fixing it 🙄.
I filed by mail earlier this week and asked TurboTax for a refund of my state e-filing fee, though it's been almost a week without a response...
Regarding my decision to use the non-simplified Form 1116-AMT:
1. I tried looked at all three of the non-AMT, the simplified-AMT, and the non-simplified-AMT. Each gave a different number for the maximum allowed credit, but since all were greater than my foreign taxes it did not affect my bottom line.
2. The non-simplified method did not require any more input on my part than the simplified method. Turbotax did all the calculations, mostly involving picking some numbers from my Form 6251 instead of from my 1040 and using them in calculations with some different parameters.
3. My return was accepted!
There are e-file issues with the Form 1116 in general. Please sign up for notification here: Form 1116 reject error
[Edited 4/6/2021 3:44 PM]
I am having the same exact issue. Do I understand correctly that the 1099-DIV fix that you're working on will correct this and allow for e-file?
I also have this same issue, in addition, California requires that I e-file based on a previous year, but TurboTax desktop will not let me file-by-mail for federal and e-file for state. Am I stuck until one of these are patched?
I am having the exact same problem. Earlier in the year (mid February) I do not believe I was having this problem as it appeared that all the checks were successful and I stopped short of efiling as I was waiting for one more 1099 to arrive. Now it appears that I can not efile. I get a screen that says I need to fix this problem during the 'complete check' review, which I do not recall seeing before.
It seems counterproductive to have everyone with this issue (4 people so far) contact support individually. It would be best if Support can update this thread directly so that everyone following it is aware of the latest.
Also experiencing the same issue, and just spent 2 hours on the phone with multiple agents. When will this be resolved?
I am experiencing the exact same issue. I do not have any issue with 1099-DIV. I live overseas and all income is foreign-earned. I have e-filed many years with no issue, but when I try to file this year I get the same error message stating Turbotax can't handle AMT simplified method for Form 1116, requiring paper filling. Clearly there is a glitch. This is extremely frustrating and really the customer service being provided has been extremely unhelpful/unsupportive
Same -- Calling from overseas at great expense. No one can provide assistance except to say, perhaps try deleting form 1116 and all inputs and try to manually complete the form again. Extremely frustrating as you are unable to make an electronic payment without e-filing, and living overseas limits the ability to make electronic payments without huge fees
I have done that and spent an hour on the phone at my expense (calling from overseas) without any resolution. There's clearly a glitch here and TT needs to resolve this
Me, too. Rejected merely because I have to use the Simplified AMT FTC form. The 1116 seems to be ok, but not the AMT version.
It looks like that same issue is being discussed on this thread. However, that's a super long thread that seems to discuss several different issues at the same time, so it's quite confusing. It's marked as Solved, but I couldn't really see any solution there...
I'm a "survivor" from that thread. Basically, if you use the simplified AMT Foreign Tax Credit, TurboTax cannot efile your taxes. The IRS made a field required this year, and TurboTax needs to update their software to handle it, but they have decided not to (and their support is mostly really terrible, rude, incompetent, and liars - they definitely won't be able to help you with this issue).
Before a recent update, TurboTax used to allow you to actually e-file with simplified AMT Foreign Tax Credit, but it'd get quickly rejected by the IRS because of that required field. After weeks of waiting and a 15+ page thread, their "solution" was to update the software to block you from e-filing. Seems pretty clear to me that they're not going to fix it.
According to the IRS, it sounds like they'll change it back next year; so hopefully it'll work again for 2021 taxes. Perhaps that's also why TurboTax decided not to bother fixing it 🙄.
I filed by mail earlier this week and asked TurboTax for a refund of my state e-filing fee, though it's been almost a week without a response...
@ShadowLink thanks for sharing, this is super helpful! Sounds like filing by mail is the only viable option, so I'll stop wasting time looking for a workaround.
They clearly don't have their act together. Even if they can't fix it, at the very least they should have posted a clear answer explaining the situation and apologizing for it.
Yes me also, Turbotax is rejecting e-filing because it says I used the simplified AMT foreign tax credit (I don't even have to pay AMT) but just having the form there is making it so I can't efile. Come on TurboTax, I know there are changes to IRS requirements but this one is an oversight that needs fixed for lots of people or we all have to waste paper by printing the return, mail it (hope USPS gets it there) and then wait even longer.
I ended up just not claiming the foreign tax credit, since it wasn't a large amount and it was worth it to me to e-file. If someone is aware of other tax preparation software that is able to handle this more gracefully, that would be useful knowledge to share. Who knows if this is going to still be a problem next year.
I chose the "better to ask forgiveness than to ask permission" approach, filing the non-simplified AMTFTC despite the IRS rule to the contrary. Based on past experience, there's reasonable chance that the IRS will just auto-correct it rather than forcing me to file an amended return.
@jveranth maybe an interesting option. A few questions, if you don't mind:
thanks!
Regarding my decision to use the non-simplified Form 1116-AMT:
1. I tried looked at all three of the non-AMT, the simplified-AMT, and the non-simplified-AMT. Each gave a different number for the maximum allowed credit, but since all were greater than my foreign taxes it did not affect my bottom line.
2. The non-simplified method did not require any more input on my part than the simplified method. Turbotax did all the calculations, mostly involving picking some numbers from my Form 6251 instead of from my 1040 and using them in calculations with some different parameters.
3. My return was accepted!
@jveranth Thanks! I went through and it also didn't affect the bottom line. This then allowed me to go all the way to the final "Transmit my returns now" button, so clearly that removed that issue. 🙂
I have not actually sent it yet, as I'm still a bit worried about the implication of changing method from prior year. But unless I hear someone give strong arguments against it, I'll probably just do it in a week or two. As you said, better ask for forgiveness than permission! And it's not like we're cheating the IRS out of anything here, since it has no (visible) effect on anything. In fact, I'm sure we save them money by not having to deal with a complex paper return manually.
On the other thread, a number of us went the "ask for forgiveness rather than permission" route several weeks ago and succeeded in getting the e-filing accepted. The AMT carryover stayed roughly the same, and no (or very few) other changes were apparent on any form. Both my federal and state refunds were identical to what they were before abandoning the "simplified" option and both appeared in my checkbook within 3 or 4 days. If the IRS wants to pursue this calculation change, they will be coming after dozens/hundreds/thousands of TT users for filings that did not change the amount due (or to be refunded) by even one cent.
Thanks @OliveMom56, this increases my confidence that it's the best path to take to get around this problem!