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

[Anonymous]

Wow 

i thought i was the only one that has the same problem as you and non support from turbo tax .

I just gave up after a day with support who has no idea how to help me .i just did not write on the forum like you .

Like you , i am waiting for irs rejection of my transmitted efiling  . I hope i get it rejection soon so that i refile again using olt as i am at a loss like you using turbo this year 

there is serious problem with turbo software (e.g wrong status) and its technical support to solve our issues .

[xingchen1999199]

Thanks. After 72 hours, IRS starts to show my return received on their website. I guess weekends does not count into the wait time.

[JES33]

@fa123 Unbelievable!  I e-filed on Saturday and received my TT acceptance emails for both federal and state.  I just went into TT and so far the software (Mac desktop version) is still showing both returns were accepted.  I checked my IRS account and it says that the return hasn't been processed but that it may take up to 21 days after e-filing to process.  Hard to know if that is a generic message that anyone will get or if it means they have the return but haven't yet processed.  I am sorry for all the aggravation and wasted time and I especially thank you for the comprehensive write up that you provided.  If you can, please keep the community posted on what you do to correct the problem.  In looking at the numbers that TT produced on my return, they appear to be correct; however, I also tried Block this year for comparison and the numbers are different for foreign tax (everything else matched exactly).  TT numbers seemed to be the correct ones which is why I went ahead and e-filed with TT, plus I don't think Block's software is ready for e-filing yet.

[fa123]

@AnonymousThanks for chiming in.  No you are not alone.  I think the only way we can get TT to get their act together is for people not remain silence and write to the forum.  If you find someone reported an issue that you share, please at least drop a line, and link to the relevant people.  This way, you raise the profile of the reported issue and in my experience, with high-enough visibility, some hot-shot takes notice and drags TT to pay attention to the issue.

As of now, I am unable to file my taxes and I do have the right to demand a refund of my payment  to TT for their crummy product and unprovided service.  In my case, it is less than $100, which I really do not care about, but if enough people demand refund like that, it becomes a noticeable sum and TT has to wake up and take notice.  They have created many disgruntled customers this year with their Form 1116 Schedule B fiasco who will stop using TT next year, but I don't think enough people have explicitly said this for TT to pay attention now.

[fa123]

@JES33Thank you for your story.  I am sure we are not alone.  TT software definitely has a problem with e-file status, and independently of that, the way they calculate carryover on Form 1116 Schedule B is not acceptable as far as the IRS is concerned.  As far as I know, no one at TT is taking these issues seriously enough to have their technical people to have a look.  We are left in limbo!

Please do write a sentence and complain if you have encountered these or any other issues.  Unless TT feels enough pressure, they will not do anything.

[Sonnyof42]

@JES33 @fa123  What a mess!!  If you have a balance due or a refund and used direct deposit or direct debit to/from you bank account on your return, one way to tell if your return has been accepted might be whether the IRS deposits your refund or withdraws the balance due from your bank account.  However, I've always managed my taxes to have a small overpayment which I apply to my next year's taxes, so I don't know long it takes the IRS to do either of these.  Maybe someone else can comment on this if it is relevant.  I'm sure this isn't very comforting, but if you keep all the evidence from TurboTax of your returns being accepted this should enable you to avoid any underpayment penalties, should they apply, although not interest on any underpayment.  

I e-filed with TurboTax on March 11th and my returns were accepted and I haven't received a rejection notice.  My experience logging into my IRS account was the same as @JES33, and it simply says my return hasn't been processed and it may take up to 21 days to process.  Others should chime in here if they are aware of any way to confirm filing directly with the IRS.

As to alternatives to TurboTax, despite my personal frustrations with the Form1116ScheduleB fiasco, which are nothing compared to @fa123's issues, one of the financial blogs I've read said that some of the others can come up with an incorrect foreign tax credit because of issues with adjustments for foreign source capital gains and qualified dividends or failure to make users aware of the exception for such adjustments.  

[ronald-goerke]

Following the steps from here I was able to accomplish the task.

1. Select Search and search for foreign tax credit. Select the Jump to link in the search results

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-the-foreign-tax-credit-fo...

[dragon254]

After the update on 3/12/22 I was able to efile (I had two forms 1116 Schedule B one for passive investments, the other for re-sourced by treaty), the return was accepted (usual message from TT) and there is no rejection as of now.

[unmesh59]

With all these reports of screwups, I've been wondering if my returns were really accepted. Well, today the Feds and the State both pulled the money owed out of my account so one more marker in my favor I suppose.

[LarryDean]

For those still having difficulty and/or being worried that things aren’t going through, my status on the IRS site has advanced to “Refund approved”.  So it appears that at least some whose TurboTax efilings had form 1116 with attached 1116B are successfully on the home stretch.  I efiled last Friday (3/11) before the TurboTax site was fully fixed.  I used the procedure noted in my posts on pages 26 and 30 of this thread to manually get the attachment form 1116B in the right place on my laptop for the TurboTax efiling to pick it up.  I did not play any tricks such as zeroing out the carry forward amounts.  The IRS accepted the return within an hour after efiling.  Between last Friday and this morning, the IRS site showed “Return Received”, with the notation that it could take up to 21 days to process.  This morning (Wednesday 3/16) when I checked the IRS site, it had advanced to “Refund approved”, with the notation that the electronic deposit should arrive at my bank by 3/18.

[JES33]

@LarryDean That's good news.  Your post prompted me to check my IRS account again.  It appears they also have my return now.  Last night they didn't.  I am also due a refund.  It doesn't yet say it is approved; however, I applied some of it to 2022 estimated tax and it does show that amount as having been applied to 2022.  I guess they're willing to take your money faster than they'll give it back, but at least the return made it through the process.  Unlike you, I waited for the final Turbo Tax "fix" before submitting the return this past Saturday.

[HK-NYC]

@LarryDean   Thanks again.  Your posts in this community have been very helpful.

Just to add a bit to what you have just written, even those who are not expecting a refund (ie, you owe taxes on your 2021 tax return) can check on their filing status to be sure that the return has been received via the IRS Refund Status page.  Just enter the necessary identification info and a $1 as the refund amount (sorry, can't enter a $0).  Naturally, only your "Return Received" status matters here.  The other two, "Refund Approved" and Refund Sent", are irrelevant.  This way, you can avoid having to sign up for an IRS account (if you don't already have one) which currently requires using ID.me which the IRS has announced it will discontinue after receiving a huge backlash as the technology collects massive amounts of information about the users and it requires a selfie photo (facial scan) as identification and it apparently doesn't work quite as well with non-white faces. 

[turcog]

I have been following this thread for weeks now. I used TT PC Download and I am upto date as of March 12.  Do I still have to manually get the attachment form 1116B in the right place on my laptop for the TT efiling to pick it up? Or did the March 12 update fix this issue, and now TT will automatically will pick up 1116B? 

[Sonnyof42]

@HK-NYC @JES33 @LarryDean Thanks to each of you.  My Account Status simply shows the Total Amount Owed as of March 16, 2022 as $0, without confirming whether my return was received, but under Tax Payments for the 2022 tax year says I have payments to claim on my tax return for that year and shows the correct overpayment applied from my 2021 return, which is indirect confirmation.  So thanks to @JES33 & @LarryDean for the suggestion to check my account again.  

I had tried to check via the IRS Refund Status but it didn't work using $0 for my refund (since I applied my overpayment), but putting in $1 for my refund worked and confirmed my return had been received, and also worked for another taxpayer.  So thanks to @HK-NYC for that suggestion.  

Interestingly, the login to my IRS account worked fine, probably because I already had an ID.me account (for veteran discount purposes with Apple) and maybe because I've signed in more recently, but when I tried to login to my wife's account it said she needed to set up a new account.  So it appears the IRS still is requiring the ID.me process, either through the facial scan process or interview process.

[LarryDean]

@turcog, while I didn't do it that way myself, as far as I understand from other posts, the procedure I outlined on pages 26 and 30 is not necessary if you have the 3/12 update.  Apparently, that update either does those steps for you, or something else was changed in the update so that the 1116B attachment flows within the TurboTax software without needing the 1116B form on your hard drive.  Probably the latter, but since I didn't do it that way, I don't know for certain.