Not able to e-file due to simplified AMT foreign tax credit

[ambanmba]

Has anyone confirmed is this same issue is in the competing products? If not, which product can we use instead of TurboTax?

[phedwards2]

I'm sure we've all noticed TT are not responding to this thread any more.  Just us pesky customers complaining.  I don't know if other products (TaxAct etc) have the same problem, but would assume not.  First TT advisor I talked with advised me to file manually.  Second TT advisor I talked to advised me to say NO to Simplified AMT Method without IRS permission and e-file.  She thought it unlikely it would trigger an IRS Audit. Neither were aware of the bug, so it's like TT is telling their staff about it.

I am in the camp where it didn't make any difference to my taxes, which AMT Method I used (I didn't trigger any AMT tax either way).  I think it will only matter if you actually trigger AMT.  Maybe the IRS won't care if both calculations result in zero AMT.  But of course you never know which IRS analyst will review your case.

[peebee]

Hello, Is this AMT issue not allowing efile going to be solved-Hello TurboTax people? Its end of April? Also does that mean we will need to mail both Federal and also State tax? Thanks in advance!

[phedwards2]

Update... I called the IRS today to ask how to get their permission to change my AMT calc.  Very nice IRS lady made inquiries for 15 minutes and concluded that no-one there knew how to do that.  She said there is no-one else to ask at the IRS and advised me to search IRS online docs.  I explained again that those docs say I need IRS consent to change the AMT calc and she agreed that no-one at the IRS knew how to do that.  At that point she said I should ask my CPA.  So the last TT CPA I talked to advised me to change the AMT calc (since it doesn't change my tax owed or paid), so I can e-file, so that's what I'm doing.  And if the IRS Audit me, I will ask TT to share this post with them in my Audit Defense!

[peebee]

Thank you for this -I will do the same by going into the forms and making the change. If audited- I will also cite this TT discussion. 

[ABitAnnoyed]

For what it's worth, I found this discussion on another board (Intuit Proseries appears to be the professional version of Turbotax).   The last entry says that someone at Intuit told her that a fix might be in by Friday.   Of course that might not happen...   

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/proseries-is-not-allowi...

[Jonas1219]

Yes, I checked earlier today.   Went to Deductions and Credits, clicked on foreign tax credit and then went through the questions.  When it asked if I wanted Simplified, I said no.   Then compared the AMT 1116 with what I had before.    Some different entries, but the bottom line tax credit was the same.   I am going to wait a little longer, since we have until May 17th.  IF TT fixes the program, I can e-file the right way.   If not, I might e-file with the other method, figuring it makes no difference, and the IRS probably won't notice.   That said, I am annoyed the TT has not fixed it and forces me to make a choice between mailing and going against IRS rules.   For anyone who opts to mail, I suggest sending certified so you have proof of mailing.   Even with certified, I had some state returns for other people that I mailed that took 2 weeks to go 8 miles.   I was very happy to have the proof that they had been mailed.  

[Jonas1219]

I just spoke to someone at TT who did not know if or when the problem would be fixed, but emailed me a link to sign up to be notified when it is.   I have done so.  In the meantime, I will weigh the pros and cons of mailing vs. changing from the simplified method in order to efile.

Here is the link:

https://ttlc.intuit.com/community/electronic-filing/help/i-got-an-irs-re[product key removed]g-to-e-...

[ABitAnnoyed]

>> I just spoke to someone at TT who did not know if or when the problem would be fixed, but emailed me a link to sign up to be notified when it is. 

I could be wrong but I believe that is a different 1116-related error.

Some people are able to efile their return through TT but the IRS rejects it due to errors on 1116. 

This one differs - TT tells us they won't efile our return because we used the simplified AMT method.

[LinaJ2020]

There are e-file issues with the Form 1116 in general.  Please sign up for notification here: Form 1116 reject error

The 1116 error messages are not only limited to 1099-DIV.  This applies to Form 1116 e file overall.  

[ABitAnnoyed]

Hi @LinaJ2020 ,

>>There are e-file issues with the Form 1116 in general.  Please sign up for notification here:

>> The 1116 error messages are not only limited to 1099-DIV.  This applies to Form 1116 e file overall.  

That's great, but that's not the issue we are discussing in this thread.  This thread isn't about an 1116 reject error from the IRS.   This is about TT declining to efile at all, if we elect simplified AMT foreign tax credit.

[JeanAtkinson]

@ABitAnnoyed I'm pretty sure that @LinaJ2020 is a bot. If you look back, this is now the 3rd time that she gives the same completely unhelpful answer about Form 1116, despite each time being told it is not relevant.

This is the state of TurboTax support... :(

[ABitAnnoyed]

Maybe bots are cheaper than software engineers?

Anyway, in case anyone is still interested, I checked out the competition.

Tried H&R Block first.  Generally a good experience, just as easy to use as TT, but ran into a problem with (drumroll...) the AMT version of form 1116.  Totally different problem though.  Block didn't bother to fill out the worksheet for line 18 of the AMT 1116, which in my case is (a) mandatory, and (b) saves me about $500 in AMT.  Doesn't appear to be any way around that without intervention from a human at Block.  I'd guess that is possible, probably for an additional fee, since they do have employees who do tax returns.  But if I can't depend on the software to do the right thing, I'm not really interested in being their customer.  

Tried TaxAct next.   Generally a good software experience also - all three are very similar in user interface - and, as far as I can tell now, did all the tax calculations correctly and is happy to efile it for me.   I'm still waiting a few more days to see if TT pulls its head out before I commit to the switch.   If any further problems come up I'll update, but for now it looks like I'll be a TaxAct customer this year and into the future.

[Bahtigo]

I run into the same situation and it is super annoying. Did paper filing about two weeks, package has not arrived at IRS (international shipping).  Now I went through thread and zoomed in on the choice of "Simplified AMT". Where are the tax form/worksheets submitted to IRS that record that choice? I looked through the forms submited to IRS, found no mention of it. Only when all the forms are selected then on one of the worksheet kept for own record documented that choice. Can someone also check and see whether this is true? if so, then we can get around by not choosing it so we can efile since it does not change anything. Then change back for record keeping.

[Periwinkle65]

I learned from a CPA that if the foreign tax is paid to multiple countries (vs. a mutual fund listed as RIT), you must mail rather than e-file tax forms. The reason is that such forms must be checked manually by the IRS. 

I don't think that there is any way of avoiding this annoyance which is created by the IRS and not TT.

It is my impression that the IRS will reject returns missing the 1116 form which, I think, is the simplified one.