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

[Anonymous]

@bogalur_native 
Correct.  Essentially, all that waiting for 1116 Sch B achieves is allow you to take tax credit this year for past Foreign Tax carryovers.

If you, like me, don’t wait for this document, you can take the tax credit next year since TT will transmit your past carryovers to the IRS irrespective of whether or not you wait for 1116 Sch B.

[bogalur_native]

@Anonymous 

Thank you. After you e-file, I am assuming you have no entry now on line 10 of Form 1116 but the carryover sheet is there as part of the e-filed return. I am sure you are also seeing an impact in the refund amount or due amount or no impact but the accomplishment for you is that F1116 C/O sheet is there as part of the e-filed version. It is a good way to handle the problem if anyone is in a hurry to e-file the version. Key takeaways are:

1. Ability to e-file the return now.

2. F1116 C/O data is not lost or is not zeroed.

3. One will not see any entry in line 10 of Form 1116 with your approach which may or may not impact all filers with their refund or due though the filers have a F1116 C/O data as part of the e-filed version.

Please confirm whether my inferences are correct. 

Thank you.

[Anonymous]

@bogalur_native You summarized it well.  Thank you.

[bogalur_native]

@Anonymous 

I checked all the points I noted in my previous posting to you. You are 100% correct. I agree it is one reasonable way to handle e-filing now. If someone has time & if they prefer a full refund or feel they need to take into the account of the actual carryover amount now, they simply need to wait. Thank you for your posting. 

[Yaxman]

Has anyone tried HR Block? Can their software handle this properly? Obviously, TT is way too slow to react to the latest changes in the tax laws and forms. And, it is still not clear they will be able to do an e file for this carryover this year! 

[simeon4497]

Please tell me why Form116 with a carryover now says unsupported.  I filed last year with unused credit so why can't those numbers transfer?

[MishawakaKirk]

Or TaxAct ?  From what I am able to see, I think their software supports the 1116 schedule B.
Anyone switched, or tried it ?

[Adelmaneric7]

To simeon4497…

The IRS is requiring a new reconciling schedule this year for foreign tax credit carryovers. https://www.irs.gov/pub/irs-pdf/p514.pdf

If you read through this thread, you will see a few postings discussing the new IRS requirement. You will also see postings that TurboTax might come up with a solution to E-File by providing the capability to include a PDF with the new IRS Form 1116 schedule B requirement. 

[djoseph120]

Not working form me, I'm losing the entire credit if I click on deduction.  TT should be giving an option to take the credit without form 1116 but they are not, perhaps because I had carryovers that I could care less about and will probably never be able to take. My foreign taxes were $591 which should make me eligible to skip 1116 per IRS.

• All of your foreign source gross income was “passive category income” (which includes most interest and dividends).  However, for this purpose, passive income also includes (a) income subject to the special rule for described later, and (b) certain export financing interest.

• All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-3 (Form 1065), Schedule K-3 (Form 1120-S), or similar substitute statements.

• Your total creditable foreign taxes aren't more than $300 ($600 if married filing a joint return).

[krsbozo]

MishawakaKirk, no it doesn't change the tax I owe this year at all. It merely tells the program that I have no foreign tax credit carryforward, and so TT allows me to file now and be done with this mess. So, I hope to next year use that carryforward, or use it some time in the future when I have more income and so am not limited in the amount of foreign tax credit I can claim. I'm guessing that the reason I have a limit that requires a carryover in the first place is that I have much less income. 

[rpromm]

The answer given by the TT employee is unacceptable.  I paid extra for the premium product to make sure that my more complicated tax reporting issues would be covered.  Further filing by mail is not acceptable either.  Fix this ASAP or give me a refund and I'll go to H&R Block.

[MishawakaKirk]

You're talking to the wrong group.  Everyone here feels your pain and agrees with you.

You need to let Intuit know your thoughts.
Remove the spaces below and insert the symbol between the two lines

office of the president

intuit.com

[Don-TT]

I am ok to wait until march 17 or 31 if it's fixed. My scenario is a little different, I have to go through the AMT calculation, so there are two 1116 forms TT shows in my file - one regular and one for AMT. The AMT one has a carry over from last year, not sure why but I does. I pay a very small amount of AMT tax this year, so removing that credit would directly increase my tax owed.

[ZZuser8]

Thanks everyone for this discussion.  This is my most recent update:  

Availability dates updated to 3/10/2022 and 3/11/2022 respectively, for Print and E-file.  Yipee!

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

[mitchwinter]

Nice!