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In the meantime, for learning purposes, is there an example filled Form 1116, Schedule B? Thank you.
@Relaxed_Duck Thanks for this information. I'll wait til March 31, keeping fingers crossed!
I have been a satisfied Turbo Tax user for over 25 years and I, too, find this issue vexing. It seems to be true that changing the foreign tax from a credit to a deduction makes it possible to e-file. But that reduces the amount of my refund by $148. I am unable to determine if an update to resolve the Form 1116 Schedule B issue wll be forthcoming by the end of March. Because I don't need the refund anytime soon I'm going to bite the bullet and go ahead and file by mail and hope Turbo Tax has this issue resolved next year.
This workaround of doing an override of the carryover from 2020 was successful for me and acceptable because I am only postponing a tax bill reduction of $25. I have saved a copy of the non-overridden 1116 Worksheet to use next year
This seems to be equivalent to what we've been failing to achieve through redoing the Interview.
I will wait a few days to see if Intuit has done the official fix, else I'm going to efile.
3/4/2022. I was furious with the "Form 1116, Schedule B- Foreign Tax Carryover Reconciliation Schedule" issues. Spent hours trying to correct them. Finally, I cared more about efiling my IRS and NYS returns promptly "with no errors" than using a $44 tax carryover from 2020. So at some point I checked some box effectively saying I did not want to use prior year tax carryovers. That helped (some how). And the other things I had to do related to the Form 1116, were to file several required attached "statements" along the lines of "Balance of deductions from income not claimed as definitely related on line 2;" or "Deductions from gross income not on line 2" (whatever those statements mean). It's just crazy. One has to fiddle with different entries until all the errors are gone. At that point, it appears TT and the IRS are on the same wave length electronically for approving the return. And if a real person examines my "Explanations" and determines they're nonsense and I owe more money (or get less of a refund), so be it, I'll go with the flow.
So my question, for someone more familiar with the TurboTax "community" forum, is whether TurboTax pays any attention to the comments registered here, so they know how many people have been affected by this issue? Or whether they even care?
There is a bad way. Look at Form 1116 Schedule B; its pretty simple. You could print out your Turbotax return, go to the IRS site and get the pdf of 1116 Schedule B, fill it out, and attach. This is truly sad. It hit me, and I had between $300 and $400 of foreign taxes. I could have just fibbed and called it $300 and put it on Schedule A. I would have been done mid-February. This is just sad.
March 4, 2022. I just efiled my IRS and NYS returns. Yes, Form 1116 does now show up (it had not previously). I had foreign taxes from 4 sources (and as you know, most of that money goes back in your pocket if you do Form 1116), so I ended up putting 3 of them on Copy 1 of Form 1116 and the 4th on Copy 2 of Form 1116.
Importantly (I'm fairly sure), earlier in Step-by-Step, I entered that I DID NOT WANT TO USE Tax Carryover from prior years. That may have avoided the line 10, Schedule B, line 3 Column xiv, Reconciliation Schedule errors that over-and-over required me to mail my tax returns (not using precise words, but close).
The other thing I had to do to get rid of mulitple errors to efile, was to fiddle with the entries on 1116 and the worksheets for it, e.g., I was asked 2 or 3 times for REQUIRED "explanations" pertaining to Statement A, 3, A or 3, B, etc., so I submitted them with explanations like "Deductions from gross income not on line 2," or "Balance of deductions from income not claimed as definitely related on line 2," etc. (I have no idea what the explanations mean, but just submitting SOMETHING seemed to make them "take" and get rid of the errors preventing efiling). So good luck.
It would be nice if they said that on their forms site.
Form 1116 Schedule B takes about 5 minutes to fill in, especially for someone who gets hit with a carry over credit for the very first time.
You're stuck even if you didn't have carryovers from previous years. This is my first year, and I'm willing to forgo that amount. But I don't get that option. And going with a deduction instead of a credit is $100+
Here is what I found posted in another forum (https://www.bogleheads.org/forum/viewtopic.php?t=371946&p=6548130) posted by by marcuscato1983 » Fri Mar 04, 2022 4:15 pm:
"The "Office of President" from TurboTax called me and let me know that even though *officially* the Form 1116 Schedule B is available for print-only (not e-filing) on Mar 31st, they are working to get everything implemented and make the form AND e-filing available by Mar 16th (no guarantees of course)."
I decided to be patient and give them until end of March to get this fixed.
If, as you have stated, Schedule B to Form 1116 is to "reconcile your prior year foreign tax carryover with your current year foreign tax carryover...", wouldn't the current Form 1116 is supporting just that, at section "Foreign Tax Credit Carryovers", subsection "Foreign Tax Credit Carryovers to 2022"?
Thank you!
Why not fill out the Sch B from the IRS website and attach as a pdf?
I've run in to the same issue. Their form availability page indicates that the necessary Form 1116 Schedule B, Carryover Reconciliation will NEVER be available for E-File.
With a multi-thousand dollar refund coming, and months long delays for paper filings, that's NOT an acceptable answer.
Already switched to a different provider - and paid for both.
Bye-bye TurboTax.
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