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

[MishawakaKirk]

Ok, a bit of an update...

I've been playing around, to see if TT would transmit my returns.  Already burned 40-50 pages of paper, getting ready to mail.... was considering using the Online version, as I know where to put the numbers..

However, back to TT Premier Desktop version, Win 11, and I got to the final page and told TT to e-file FEDERAL Only, and whoa, it worked! 
Federal is e-filed!
So far, so good.  Exited TT, retried STATE only, and it fails.  But at least I now only need to mail one return in.  Anyway, it's progress, but at the VERY Least, I feel I'm owed the $25 state filing fee TT charged me

[TrishMarie]

I also filed on March 12 and when I check on "Track my Refund", it still shows in process.  Here is the exact wording..

.If you filed a complete and accurate tax return, your refund should be issued within 21 days of the received date. However, processing may take longer under certain circumstances.

So, I think you are still OK as far as the IRS timeline is concerned.

I will wait at least 3 weeks before I check again.

I actually already received my State refund.

[mesquitebean]

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@ MishawakaKirk  wrote:

Ok, a bit of an update...

I've been playing around, to see if TT would transmit my returns.  Already burned 40-50 pages of paper, getting ready to mail.... was considering using the Online version, as I know where to put the numbers..

However, back to TT Premier Desktop version, Win 11, and I got to the final page and told TT to e-file FEDERAL Only, and whoa, it worked! 
Federal is e-filed!
So far, so good.  Exited TT, retried STATE only, and it fails.  But at least I now only need to mail one return in.  Anyway, it's progress, but at the VERY Least, I feel I'm owed the $25 state filing fee TT charged me

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How long did you wait after efiling the Federal return to try the state return?   Had your Federal return been accepted?  If you efiled the Federal return by itself first, you cannot efile a state return until the Federal return has been accepted.   

Have you received any word yet on the Federal efile status?    Once the Federal return is accepted, you can try efiling the state return.

[Lauraliu]

Thank you so much Larry for the solution. The e-file went through after following your steps.

[MishawakaKirk]

mesquitebean

I e-filed Federal at 2:00 EST today, it was accepted before 3:00 EST.  So per your recommendation, I just tried State again.  Nadda... still doesn't transmit anything, and leaves me on the Transmit Returns page.  It was worth trying, and I'll try a few more times before dropping the IN in the mail.
So I will still push for a refund, of at least $25, state e-file fee.  or more

[daniel-an]

Brilliant idea !!! Tried input 0 for AGI, got response that federal tax return been accepted. Don't know why IRS still didn't input my last year's tax into its data base although they debit my tax pretty soon last year after I mailed it.

[mesquitebean]

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@daniel-an wrote:
Brilliant idea !!! Tried input 0 for AGI, got response that federal tax return been accepted. Don't know why IRS still didn't input my last year's tax into its data base although they debit my tax pretty soon last year after I mailed it.

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Congratulations!   The IRS was way behind on processing mailed 2020 returns (and still are behind in some cases) due to Covid, staff shortages, etc.  Thus many mailed 2020 returns were not finished with manual processing prior to mid-November 2021.  Therefore, those returns that finished processing later than mid-November 2021 may not have the 2020 AGI in the IRS database, and using an AGI of 0 often solves this problem, as it did with you.

Thanks to @turbokarst for assisting you!

As you witnessed, the IRS does not waste any time in debiting one's bank account for taxes due or processing an enclosed paper check.

[ys56]

So.. am I right that turbotax online can e-file Form 1116 Schedule B without problems now? I use Premier Online if that matters. I moved to TaxAct because of the e-file issue but TaxAct had its own problem and I'm coming back to TT.

[993C4]

daniel-en and mesquitebean-

Like daniel-en, my Federal (and state) returns were accepted on the 5th try after entering 2020 AGI = $0.  

1) Used the March 18 update and got a rejection citing an FTC problem.

2) Switched from credit to deduction and back to credit to force a new Form 1116, filed again and got an AGI mismatch error.

3) Entered 2020 AGI = $0 and was accepted after 45 minutes.

mesquitebean must be correct re: the lag time in IRS databases.  Like everyone else with FTC issues last year I filed a paper 2020 return.  I set up an IRS account January 2022 and the transcript of my 2020 return finally showed up March 13, 2022.  The AGI on the transcript matched my paper return and the number I entered when e-filing, but I still got the mismatch error.

Advice to ys56 and others:  1) Use the March 18 update; 2) Use the credit/deduction/credit trick to force a new Form 1116 and Schedule B; 3) Use 2020 AGI = $0 if you filed a paper return.

[trailmk]

Just an update in case it might help someone.

This morning, Sunday 3-20-22, I was able to file our tax return using:

Mac desktop version of Premier TT - updated Saturday 3-19-22

Received email from TT:

TurboTax Update: Federal Return Accepted

Foreign tax credit carryover from 2020 was correctly added to this year's foreign tax credit for calculating ordinary income tax 

- AMT income and AMT foreign tax credit carryover were not relevant

I hope this helps someone. Good Luck!

[ys56]

Thanks 993C4 . Do you use turbotax online?

[993C4]

ys56-

Sorry, should have mentioned I'm using Home & Business CD for Mac.

[MishawakaKirk]

Success!

I was finally able to file everything, and I'm done for another year.
Using TT Premier Desktop, PC.

As I mentioned a few days ago, when I separated out Fed & State, I was able  to file FED (Accepted 40 minutes later), but State still wouldn't go through.  Transmit Returns button was there, but did nothing, as TT Stayed on the same screen.

So I followed the advice of a few other posters, went into my FED (already filed & accepted), changed the Foreign Tax from Credit to Deduction... then back to Credit (TT changed FED amount due accordingly), but State owed was unchanged.  Then was able to file State (Indiana) successfully!   Accepted 10 hours later.

Through this process, the FED amount owed changed, and was 'wrong'.  Had to go through the file, compare against a copy to add back some carry-over figures; finally got TT Fed numbers back to where they should be -- useful for next years tax season... to bring the correct numbers over.

This has been one of the toughest years to use TT.  Is it due to TT or the IRS making changes to the Tax Code and/or the forms?  What do we do next year?  I saw one poster tried TaxAct, but encountered similar problems with FTC / 1116 (plus, if I read it correctly, TaxAct was quite a bit more $89 Fed + $64 State ?

[DaveF1006]

Yes, Form 1116 Schedule B  is a brand new form for 2021 from the IRS. Schedule B is used to "reconcile your prior year foreign tax carryover with your current year foreign tax carryover.

if you had carryover amounts from a previous year, then this form was needed to complete your return. Being a brand new form, there were problems with the IRS finalizing the form and the subsequent changes Turbo Tax needed to make to implement this form into its software.

Thankfully the changes have been made and there should be no additional steps you need to make next year to ensure an accurate tax return.

@MishawakaKirk

[Sonnyof42]

@DaveF1006 

You make it sound as if we should be thankful for TurboTax finally fixing a problem which they did not alert paid customers to but which a user on this forum figured out how to do on a PC before TurboTax even began to suggest a date for a solution.  The only information we received from TurboTax when I first tried to file was that we were required to file a paper return and that we could not e-file, when the IRS was pleading with taxpayers to e-file and anyone who read or watched the news was aware there were millions of prior year paper tax returns the IRS had not processed.  After users on this forum began communicating about this problem and complaining to TurboTax, TurboTax finally came up with a solution for everyone, and even then some users continued to have problems.  Granted it is a new form, but not a particularly difficult one to complete since the information is already in prior year TurboTax users' TurboTax files, and certainly it is possible the IRS didn't coordinate with TurboTax regarding this form as soon as they could have, but the printed form and instructions are dated December 2020 and have been available on the IRS website for some time.  Looking at my tax files, I have files in the *.tax format TurboTax uses since at least 1997, and I find TurboTax's lack of communication with and apologies to its users on this issue inexcusable.