Not able to e-file due to simplified AMT foreign tax credit

[JeanAtkinson]

@LinaJ2020 please read through the thread. You're just stating the high level IRS rules. This is not helpful in the context of the issue we are dealing with, which is basically a TT bug.

[leiran117]

Where in Turbo tax can it be changed from simplified method to a non-simplified method?  I checked from the tax credit section and didn't get any other option. It just sending me messages at the end saying that I elected the simplified AMT foreign tax credit. 

[leiran117]

Where in Turbo Tax can it change from simplified to non-simplified? I went through the process again, and didn't find anywhere that can be changed. thx

[JeanAtkinson]

@leiran117 I already filed mine, so I'm not able to go back and see exactly where it was. But as I recall, it was under Credits / Foreign Tax Credits, and then go through the questionnaire again. That was with the web version.

Maybe someone else who has not yet filed can confirm exact steps.

[phedwards2]

While I understand you have to retain Simplified AMT once elected in prior years, the inability to e-file it is a TT bug (as several customers have mentioned in various threads).  Is there any chance that bug could be fixed in the next couple of weeks? Otherwise I'll have to mail my 200 page return from Japan.

Thanks in advance

[JeanAtkinson]

@phedwards2 please see previous replies. At this point, it's exceedingly unlikely that they will fix it. Your options are to paper file, or bend the rule and not use the simplified method (as many of us did).

[phedwards2]

The TT webpage says you can't change your AMT Method without written permission from the IRS.  Has anyone tried requesting the IRS to grant permission to change your AMT Method?  Any idea how to request them to grant that?

[Kpmiller5555]

This might not work depending on your situation, but my work-around was to go back in to where I had entered 1099-DIV information and reduce my "Foreign Taxes Paid" entry to $600 from a slightly larger amount.  That is the maximum MFJ amount to not require a Form 1116 and eliminate the need for TurboTax to e-file a Form 8949 and tell me that I had to use a faulty "Simplified AMTFTC" form or get permission from the government to stop using their "simplified" method (in writing!).  Then I proceeded to tell the software that I would itemize my deductions (no way, anymore).  It conducted the rest of the Federal interview with no gasps or protests.  When it was done, I went back in and changed the "Itemization" choice to "Take a Credit" and returned to the later page to have everything checked and e-filed.  Hopefully by next year they will have it all straightened out.  As I said, it may not suit everyone (yes, I lost a few dollars on the FTC), but in my situation getting this thing out was imperative and had to be done!!!  True, true, it shouldn't be necessary!!

[phedwards2]

@Kpmiller5555 thankyou for your suggested workaround.  Though it wouldn't apply to me (I paid a lot of foreign tax), it's very creative and I'm sure will apply to many users!

[Stephenpatterson66]

In the interview section under Deductions/Credits, i changed the election to Not use the simplified calculation and it was accepted.  there was a minor difference in taxes (like 40 bucks) but worth it to not have to mail it from Singapore.

[ABitAnnoyed]

For me, both workarounds - taking the deduction or using the non-simplified credit - increase my tax due considerably, far more than the cost of buying a different tax software package.   I am leaning towards doing that.   It will be painful to start over but Turbotax's stubborn refusal to fix what must be a very simple coding issue does not make me optimistic about the future of this program.

[TaxGirl84]

Changing answer from YES to NO for "Elect to use the Simplified AMT Foreign Tax Credit Limitation this year?" took some searching.  Easy Step process never took me back to the question that was asked during the initial step by step process.

To change Simplified AMT Foreign Tax Credit Election, switch from step-by-step mode to forms mode.

Open Form 6251.  Scroll down to the box labeled "Simplified Foreign Tax Credit Election Smart Worksheet."  Answers can be changed in this section if you chose to make the change. 

I tested changing the answer from Yes to No.   I went thru the review process again and  Turbo Tax did not give an error message for e-filing. 

Now, decision time. Make the change in Turbo Tax to be able to circumvent the glitch in Turbo Tax and file electronically or file a paper return.   

[Jonas1219]

I spoke to someone in Support in early April who said you were aware of the problem and were working to fix it.   I would like to know if it is going to be fixed before May 17th so that I can plan to e-file my taxes, or if I should give up and to the Post Office and mail them.  One entry on this thread says that Turbo Tax has no intention of fixing it this year.   If that is true, or TT is incapable of fixing it, there is no point in my waiting.    If I have to mail it, I think Turbo Tax should reimburse the cost of my mailing certified mail, since I want  the assurance it arrives- something I get when I file electronically.   Mostly I want to know if you are working on this and whether I will be able to file electronically.

[Jonas1219]

I had no issues with 1116 generally (that I know of) but was told I couldn't efile because I used Simplified AMT foreign tax credit.   Instructions say I have to because I used it last year.   I have always been able to efile.  This seems like a big Turbo Tax error that should be fix.    I don't care about being awarded badges for posts etc - just want to be able to efile my taxes.    Please indicate whether that is being worked on and is likely to be fixed before mid-May.   Thank you.

[OliveMom56]

On the other 24-page thread that started out about this problem but then drifted off to another 1116 issue, there were posts in late February in which users said they were told there would be a fix for this problem in early or mid-March.  But the fix never appeared.  And there are a number of communications from TT on that thread advising people to forgo e-filing.  I wouldn't, in short, bet this problem will be solved by May 17.  That's why so many of us are taking our chances with changing the calculation method without the IRS's permission.  But only recently have some users started noting that the amount due (or to be refunded) changes if you do this.  The first half dozen or so people who used this strategy (including me) had no changes in the amount due and concluded that the IRS had bigger things to worry about.