2021 Form 1116

[TJG513]

I have $118 in foreign tax paid. I qualify for a tax credit without filing Form 1116. Turbo Tax is telling me I need to file Form 1116 but it is not ready yet and to keep checking back. Form  1116 is available on the IRS website and is incredibly complex. How to get Turbo Tax to give me the option of NOT filing Form 1116?

[FangxiaL · Accepted solution]

Try the following steps to resolve your issue:

Within your federal tax return:

1. Go to Tax Tools > Tools to open the Tools Center
2. Select Delete a form
3. Click on Delete next to Form 1116 if listed under Federal Return
4. Go back to your federal return
5. Under Deductions & Credits, click on Edit next to Foreign Tax Credit. If it is not listed under Your Tax Breaks, click Show more next to the section of Estimates and Other Taxes Paid and click on Start next to Foreign Tax Credit

You should be able to claim the foreign tax credit without filing Form 1116.

[TJG513]

Solved my problem and I was able to Efile the same day.
Thanks,

jg

[LBMD]

I'm using TT download for Windows.  My foreign tax credit is below the threshold that I need to file an 1116, however TT keeps saying that I need to.  I've tried your suggestion, but I can't delete a form that isn't there.  So why doesn't TT recognize that my $75 credit doesn't even need an 1116 form and let me e-file?

Also, when I tried your suggestion, the steps you recommended are not available to me.  I have a tools option, but there is nothing in the drop down list that has delete a form option.  Is there another way to delete a form should I ever get the 1116?

[JohnW152]

The procedure is different for TurboTax Desktop, I’m glad you mentioned that. 

Please see the TurboTax Help article How do I delete a tax form in the TurboTax CD/Download software? for guidance.

When filing Form 1116, the credit amount will be the lesser of foreign tax paid, or U.S. tax that’s allocated to foreign source income.

[jonblauch]

I am getting the same error using TT Desktop ,and as the other user mentioned I cannnot delete the form as it does not exist.  How do we resolve this error if the form does not exist?

[MarilynG1]

In TurboTax Desktop, when you click on FORMS in the upper right, then 'Open Form' and type in Form 1116, you don't display the form?

If so, click 'Delete Form' at bottom center of the page. 

Click this link for more info on Form 1116.

@jonblauch