Beware - Foreign Tax Credit module has bugs

Forum|Forum|3 years ago
April 10, 2023
3 replies
32 views

Beware. I was making adjustments to my foreign tax carryover schedule and it zero'ed out my foreign tax credit for 2022 completely. I cleared out the adjustments and it still did not account for my foreign tax credit, even if the data was entered and still there. I had to step through every question on foreign tax credit again, and it was only reinstated when I clicked through the foreign income screens.

I figured out I can enter my net carry-back in the 2021 carry-back screen. None of the so-called Turbo Tax experts, even full service, could figure out where to enter your net carry-back adjustment. So I have had to tinker, and crossing my fingers that this is now correct. That's also how the bug came up 😞

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pk_

Level 15

@TaxFiler22204 , please could you detail me the scenario so I can replicate and hopefully what TurboTax thinks it is doing --- will you help, please ?

Very interested in such an issue

TaxFiler22204Author

Level 2

If you have foreign income reported in the foreign tax topic/questionnaire, at some point the questionnaire asks you whether you want to review your entries. If you say "Yes" it zero'es out all foreign income in your tax calculations and foreign tax credit calculation on your 1116. Even though Turbotax has and retains the data. You have to go back through every screen, and make sure you check your 1099 again that has the foreign income you need to include.

For me reviewing does not mean deleting or cancelling.

Bottom line, is people should check their final 1116 carefully if they have foreign tax credits to deduct, to make sure Turbotax is pulling in relevant income, foreign tax credits, and carry-overs.

(And next year, I will use the desktop version so I can go directly to tax forms and not deal with a faulty interface questionnaire)

pk_

Level 15

@TaxFiler22204 , interesting problem -- so you are saying it is behaving as if it is "yes" to delete / initialise your entries not " review"{ or "edit". Also I am assuming that you are talking about passive foreign income like interest / dividend etc. I saw another person complaining about entering foreign interest income, flows to form 8938 ( FATCA) but does not flow onto 1040, line 2(a) and (b) . I must try this -- I am not familiar with online version so can only try the Home & Business download/ CD version.

Thank you for sharing