Check this Entry - Form 1116

Forum|Forum|5 years ago
February 26, 2021
2 replies
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Check this Entry - Form 1116 (COPY1) -Foreign Tax Credit Comp Wks: Paid/Accrued boxes must be entered - how do I resolve this message?

TurboTax Home & Biz Windows

Best answer by MarilynG

If you have only one type of foreign income, you complete just one Form 1116. All Form 1116 filers must choose how they regard their income: on a cash basis or an accrual basis.

If your budget doesn't recognize income until you receive it, you use the cash method. Most individuals use the cash method.
If your budget records income when you earn it rather than when you get paid, you use the accrual method.

You should go back to your original foreign income entry to resolve the Form 1116 error.

Click this link for detailed info on Form 1116.

MarilynGAnswer

Level 15

If you have only one type of foreign income, you complete just one Form 1116. All Form 1116 filers must choose how they regard their income: on a cash basis or an accrual basis.

If your budget doesn't recognize income until you receive it, you use the cash method. Most individuals use the cash method.
If your budget records income when you earn it rather than when you get paid, you use the accrual method.

You should go back to your original foreign income entry to resolve the Form 1116 error.

Click this link for detailed info on Form 1116.

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mgwinterAuthor

Level 2

Thanks for the help! This information was imported and I suspect that's where the glitch was. I ended up just deleting the form out of TT and that seemed to resolve it as putting zero's in the blanks did not.

estamas142

Level 2

I have a foreign tax credit carry over from 2020. It looks like Form 1116 is ready, but not Form 1116 Schedule B which looks like now will be ready Mar 31. Also, it states that this form is nor supported for E filing. Can someone from Turbo Tax address this issue. Will I be able to file now by mail without this form or do I need to wait till Mar 31?

DaveF1006

Level 15

Yes, you may forgo reporting the foreign tax carryforward this year and report it next year, thus eliminating the need for Form 1116, Schedule B, for this year. If you report it next year, you will have a 8-year carryforward period to use it or lose it. When you report it next year, be sure to report in the year 2020. You will need to input this manually next year.

@estamas142

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estamas142

Level 2

Thanks Dave! That helps a lot. beach I would like to file ASAP. So, if I forego the foreign tax credit carry over this year, should I just delete form 1116 form from my taxes or just file without fixing the error that comes up when I review?