Form 1116 Foreign tax credit Comp wks error: carryover to 2021

[morpheus3122]

Hello,

I am getting an error when Turbotax is completing my Federal review. In form 1116, I have a foreign tax credit carryover from 2020 which Turbotax wants to apply in 2021. There is a number in the carryover to 2021 box. However, there is an error which reads as: Form 1116 Foreign tax credit Comp wks. Total incoming C/O has a value.  This will require Form 1116, schedule B which will be available in a future product update. 

What should I do here? Upon checking the form availability schedule, it seems that Form 1116, foreign tax carryover schedule form availability is 03/17/2022 for print and unsupported for E-file. I typically E-file my taxes. Does that mean I won't be able to e-file this year? Or if I want to e-file I need to remove the carryover for this year and make it 0?

[robtm]

i just finished my taxes and was told i could not e-file my taxes but could send them in by mail. not sure what this involves about 1116 sch b, but this may be an option if you don't want to wait until tt gets the form from  the irs. as i understand it, once tt gets the sch b form you should be able to e-file your return. as usual.

[robtm]

Form 1116 Schedule B, Foreign Tax Carryover Reconciliation Schedule is now available in TurboTax for printing  and for e-filing on 03/11/2022

[GeorgeM777]

If your return has been rejected regarding Form 1116B, please know that the issue is being resolved in a product release scheduled for March 18, 2022. Your tax return now includes updated information to carryover of foreign taxes. On or after March 18 you'll need to sign into TurboTax, complete a quick review (steps below), and resubmit your return. Please note this is just for your federal 1040 tax return. To review and re-submit your return, follow these are the steps if you're using a CD or downloaded version of TurboTax:

1. Update TurboTax (visit our Support Site if you need help updating).
2. Please review your answers under the topic of Foreign Taxes in the Deduction & Credits Section under Estimates and Other Taxes Paid. Make any corrections if prompted.
3.  E-file your return (you won't be charged any additional fees).

Note: The calculation change may affect your refund.

@morpheous3122

@robtm

[Tobis]

Dear George,

The new Turbo Tax version with the Schedule B for foreign tax carryover generates an error for the 2018 number in my schedule that was merely imported from the previous Turbo Tax filings. I have talked to product support for the desktop version and a tax expert for the online version. None of them seems to understand why Turbo Tax is generating this error - I think it might be a system error and my last hope is the online community. You answered above to what might be the closest question and explicitly reference the update that now generates the error.

The error is:

Form 1116 - Foreign Tax Credit Comp Wks: Incoming C/O Utilized should not reduce the foreign taxes below 0.

The complaint governs a number from 2018 merely imported from last year's Turbo Tax. The number is negative because during 2018 I used up some of the foreign tax credit carried over from the previous year, so indeed the "utilized" exceeds that year's foreign taxes paid. The negative number calculated (I think correctly by previous Turbo Tax versions) implies that during 2018 I reduced the foreign tax carryover. Indeed, that's how the number ends up correctly on Schedule B Form 1116. The error warning only seems to govern the "Comp Wks" sheet which I think is Turbo Tax's own version - at least it looks slightly different from the one suggested by the IRS.  Here the error appears by coloring in red a number in the 1116 Comp Wks. sheet. On the resulting schedule B Form 1116 everything looks correct. 

I'd be very grateful for any help!

Many thanks!

It seems that the new Schedule B calculations might have a bug