2021 Form 1116 Schedule B (carryovers) can't efile

[Anonymous]

The ***IRS*** does not allow this form to be e-filed.  Some tax software programs allow PDF attachments to be included with a return and that is the ONLY way to e-file a return with this form currently (unless the IRS reprograms, and sometimes vendors like TT can work with them to make that happen.)  Even a CPA may not be able to e-file a return with this schedule, unless they use software that allows PDF attachments.  

The form came out in December, after the e-file system was already programmed.  

[BJDCPA]

Thank you

[bogalur_native]

@TrishMarie;  @Relaxed_Duck; @talltodd 

I suppose @TrishMarie is using a downloaded PC version. Please start foreign tax credit dialog from the deductions & credits tab. Please go step by step. Try to take the credit and not a deduction. You need to make sure all your foreign sources of income are properly identified & correlated for the form 1116. If these steps go OK and if you have carryovers, the page will pop up and here you have the option to zero the carryovers. Trust it is helpful. IMHO, better to wait & I feel TT will fix the issue so that e-file would be feasible.

My other comments which may be useful to others:

1. As per the suggestion of @talltodd, I did contact the office of the president at TT. It is a very encouraging news. Hang in there. Maybe the hiccup will be fixed soon. Let us hope for a positive outcome.

2. Please note Form 1116, Schedule B is new for the year 2021. There are all kinds of complex sources of foreign income. Looks like as per some legislation, IRS has to come up with a way to comprehensively catch a reconciliation of these carryovers now in Form 1116, Schedule B.  Sure, for simple cases of foreign dividends, foreign taxes and carryovers and such passive income cases, as someone points out, all the information is already there. But this is included as one category in Form 1116, Schedule B and it is not streamlined into the tax software. It is an unfortunate hiccup for most filers who may have only passive income and nothing complex.

3. IRS has released the details only by the end of 2021 for the Form 1116, Schedule B. It is a complex form that includes all kinds of foreign income sources. While the passive case is easy, it does not look so for other categories?

4. I doubt any vendor has a fully integrated software version without a pdf attachment version as a patch-up?

5. Let us hope TT comes out with a version that would be satisfactory to most customers with a simple passive income cases that can be e-filed.

[rifi]

@MishawakaKirk :

What  Dana meant is that Intuit is working on it being able to attach a 1116 SchB pdf to the tax return it e-files for you. Intuit is not working on having you attach a pdf to the return it e-files for you.

At least that is what Sasan told me at the club yesterday.

[Taxlax]

I also contacted Office of the President, Intuit. I was assured that once 3/31/22 update is out I will be able to e-file my tax return.

I guess we just have to wait till next update is out to e-file tax return who have Foreign Tax Credit and carry over from 2020 and carry over for 2022.

[BJDCPA]

Thank you very well worded response.  I agree with IMHO.  Sounds like in the past Turbo Tax did not allow attachments when e-filing like some software.  I think they also want some control over the PDF form being sent to the IRS on their software so it's not as simple as an attachment of PDF we would use but rather Turbo Tax would create the PDF of Schedule B and include as part of their e-filing process.  

BJDCPA

[rifi]

Hi @bogalur_native :

“4. I doubt any vendor has a fully integrated software version without a pdf attachment version as a patch-up?”

Question ( seeking reply) or statement?

(I do see it falls under your “comments” heading, but the “?” introduces ambiguity).

[evris43]

I was preparing my return for 2021 today (03/05/2022) and the update for Form 1116 was still not available in TurboTax. Does anyone have any further information as to when it will actually be available to install?

[1Grissom6]

I have had a value on line 10 for several years, and I've always been able to file electronically previously. 

[hdetoledo]

Hello, when will Form 1116 Sched B be released for e-filing please?

The below link states that the form IS NOT supported for e-filing. We were able to e-file foreign taxes for years on TurboTax before. Is TurboTax going to reimburse us for not supporting the feature anymore despite advertised?

https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html

[ASCP]

"I have had a value on line 10 for several years, and I've always been able to file electronically previously."

I don't think it is the value on line 10 that is causing the problem. I think it is the new IRS form 1116 Schedule B which is now required that is the problem.  I assume that there is quite a bit of coding that TT must do to allow e-filing.  The IRS only recently released the new Form 1116 and Schedule B. 

[Taxlax]

I had similar question. I wrote to President of TurboTax/Intuit.

His office staff, Dana, assured me that when 3/31/2022 update is released we will be able to e-file our tax return with 1116 form and Schedule B, Carryover.

[joergherrmann9]

Is there a way to forfeit the foreign tax credit for this year (even if there is a carryover from last year) and eliminate Form 1116 from my tax return?

[hdetoledo]

Correct. We have to wait for TT to support e-filing or release the Print version for 1116 Sched B, so far we have none are unable to file.

[ASCP]

"Is there a way to forfeit the foreign tax credit for this year (even if there is a carryover from last year) and eliminate Form 1116 from my tax return?"

1. You can take the foreign tax as a deduction instead of a credit, but you do not get as much of a tax deduction and no tax deduction if you use the standard deduction.

2. If your foreign tax is $300 or less single filer or $600 or less joint filer, you do not need Form 1116, however, I think the carryover is lost for the future.