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

[MarilynC]

Greetings, I have the same problem, because although the 2021 Form 1116 is now supported on TT (March 5), the Form 1116 Schedule B (Foreign Tax Credit Reconciliation Schedule) still isn't, and it's disturbing that the TT Forms Availability chart says the Schedule B is expected to be available on March 17 for print filing but 'unsupported' for efiling. What the heck does that mean? I have always e-filed through TT and is the company suggesting that this one stupid form won't be supported for efiling so i will have to file both federal and state returns by mail? Not what I signed up for! I'm happy to wait to efile, but could really use reassurance that TT will stand behind providing forms for efiling in a timely manner! Like before the filing due date. Help, please.

[Taxlax]

I had communicated with the President's office of TurboTax/Intuit, Dana, who was assigned to answer, replied and assured in her communication that once the update is released, we will be able to e-file the Tax return. Originally this update was to be released on 3/31/22 but I find now they have changed the date to 3/17/22. This is the good news. Let us wait and see.

[WHoben]

Being able to e-file would be optimal--worth waiting to see if updates later in March make it possible.

I do appreciate that this situation is not TT's "fault"--there have been so many changes to the tax code made so late recently. I suspect chronic under-funding of the IRS is at least partly to blame and is one reason I dread submitting a paper return.

However, TT can earn some customer loyalty points by doing whatever they can to minimize our pain. Not having to print my federal and state and pay mailing costs when I bought the product with the expectation of e-filing would certainly satisfy me.

Thanks to all the members who've responded with observations, suggestions, and information.

[monophoto]

There are two issues here - one is the inexcusable delay in implementing the portion of TT that deals with Schedule B.  We were clearly told that 1116 would be available on 3/3/22, and trying claim that Schedule B is a separate thing is disingenuous.  In other words, its lying.

The other issue is the matter of e-Filing.   Those of us who live in NY don't have the option of filing our state return on paper, and if TT can e-File, then TT fails to perform its most basic function.  And for them to fulfill orders for their software from customers in NY would therefore be fraud.  That a really serious problem.

And then there is the issue of the competence of TT customer support.  I was on the phone with TT about this issue on Friday.  It took two phone calls, lasting two hours and involving three separate TT support people, to finally get to the answer that Schedule B isn't functional yet in TT and that the ETA is 3/31.  Later, I discovered this thread.  It seems to me that if this problem is well enough known to have attracted this much discussion, the first person I spoke with should have been able to recognize my issue after five minutes of conversation.  And by the way, they didn't mention that there could be an e-Filing problem with Schedule B. 

[carllaline]

you could just reduce the "amount of foreign tax paid" shown on your 1099, by the amount of the carryover amount.  It certainly wouldn't constitute fraud, since you're foregoing future tax benefits and paying more taxes than you owe.  But I have no idea as to whether the IRS rejects returns if the amount that you input for a 1099 form doesn't match what is on the forms that they receive, even if it is more favorable for the IRS.  

[bc1x]

If the carryover amount is too big to write off & the AGI is less than $73k, then OLT Free File, which is totally free, is a good workaround.

If the federal return can't be efiled, NY will allow a paper return; but that means a trip to the post office  & about $14 for postage, certified mail & return receipt.  The IRS has yet to finish the 2020 paper returns.

Both of my efiled federal & state returns done with OLT Free File were accepted within 10 hours.

[krsbozo]

I used @Anonymous strategy of cutting my 2022 carryforward and e-filed this morning. After waiting months to file, and then dealing with this latest problem, I just wanted to be done with this whole TurboTax thing. I am a long-time customer, and I'm not a hater of software engineers, because I was one, and they are generally good people, and this is hard. 

I also had a seriously frustrating problem last year, so my frustration is cumulative. 

But anyway, I am done for this year, and next year, I will try a different system for filing my taxes. (And probably, I will find that system frustrating, too!)

[MishawakaKirk]

Everyone using the work-arounds -- doesn't that result in overall higher taxes? Pay more or Less Refund?

In my case, the Foreign Tax credit is over $500.  Removing it from my taxes, increases the amount I owe, by the same $500.  If the end result was a change of $25, I might be willing to do so... but not at an expense to me of $500.
Those using @Happy4Life work around... aren't you realizing a significant difference in the amount owed?

[unmesh59]

@MishawakaKirk 

You are right that your tax bill will increase by the amount of carryforward credit you are not taking but you can take it in a future year. Which is better than forgoing it altogether.

[Yaxman]

False! It is now 3/6/2022 and form 1116 is still having issues. Any carryover from last year results in errors and you also cannot file electronically. Schedule B of this form is still not available.

[aghess]

It is interesting that this form is not required to file my mail. It only stops you from e-filing the federal return. How can that be if it is a new form that needs to be filed?

[aghess]

This form is still not available and the only information they provide is that it should be available by March 31 when the plan to have all updates done. Still do not understand since this form is informational and does not get filed.

[aghess]

This is becoming more frustrating than I am willing to deal with. I think I will look for a refund for Turbotax and move on to a different software.

[hdetoledo]

Hi! May I ask where do you see that it will become available on 03/31?

I see on the below TT link that Form 1116 Sched B. is unsupported for e-filing :( but maybe you got a more recent update?

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

Thank you!

[aghess]

I totally agree with this comment but wonder why you can print and file by mail if this form is required since it does not print out.