E-file rejected due to ForeignTaxCreditSource/USTaxWithheldOnDividendAmt

[JohnW2021]

Thanks for identifying the issue and provided a workaround. It works for my case.

[baddogg]

Changing "various" in the date box on form 1116 or the 1116 worksheet to "12/31/20" fixed the problem for me. (Probably any ol date would work.) "various" is often the correct entry (presuming multiple withholding dates) and TTax allows this to be entered (it was fine last year (2019) but not this year). I think it's an IRS screwup myself.

[LinaJ2020]

The issue has been submitted and is currently under investigation.  If you would like to receive an update for the progress, click on the following link to get notified:

Form 1116 reject error

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  

[64dancer]

I, too, was trying to follow the instruction book that states I need to enter "1099 Tax", but couldn't because it is a date field. Thank you everyone for letting me know to just leave the date in there.

My current problem is I have a date in both row A and B when there is no data in B anywhere on my Form 1116. Why is there this extra date there? I am afraid my taxes will be rejected because of it. I cannot use Form Mode to delete it as I have to use the online version since my computer is too old for the version I had purchased at Costco.

[ReneeM7122]

To deal with the extra date, the IRS instructions say Enter in Part II the foreign taxes that that you can use were previously suspended under section 909 and that are allowed in 2020 because the related income is taken into account in 2020. Enter “909 CAUTION ! taxes” in column (l) instead of the date paid or accrued. Complete the other columns as appropriate.

You might want to delete your form and then start again fresh in order to resolve the error message.  Here's how to  view and delete forms in TurboTax Online:

• Open or continue your return in TurboTax.
• In the left menu, select Tax Tools and then Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

@64dancer​​​​​​​

[prwestmo]

Can you restate that information? It is not sufficiently clear for me as an experienced TurboTax user and taxpayer but who is neither a tax lawyer nor accountant.

The situation that many of us have is simply that we have foreign RIC tax data reported from Schwab etc. that do not report any dates at all -- or explicitly say VARIOUS as the date.

Are you advising that we should solicit specific dates and transactions?

And then amend the 1040/1116 forms that have been accepted?

I hope not!

[SBtaxquestions]

So glad this is being looked into!

I have the same issue of getting my tax return submission rejected by the IRS with the same error message (/Return/ReturnData/IRS1116/ForeignTaxCreditSource/USTaxWithheldOnDividendAmt).

I've applied the workaround discovered on this thread (changed "various" to "12/31/2020" on Form 1116 date paid or accrued), but unfortunately that didn't do the trick for me and the return is still rejected, this time with a new error message:

/Return/ReturnData/IRS1116/ForeignTaxCreditSource/ForeignTaxesPaidOrAccruedDt.

Please help to sort this out...

Thank you!

[Ronlep]

Yes. I have the same error message on rejections.  I've reviewed all info in TT, removed and reinputted some, followed the instructions to review the FTC Interview section and still have no solution.

[LinaJ2020]

The issue has been submitted and is currently under investigation.  If you would like to receive an update for the progress, click on the following link to get notified:

Form 1116 reject error

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on your US tax return.  To claim this foreign tax credit, you would need to file a Form 1116 Foreign Tax Credit.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  

[tapper100]

saldirj,

Do you by chance have multiple 1099's with foreign tax withheld, that TT combines into Col A? A similar Form 1116 thread has a few people that were finally able to get a successful submission when they split two 1099's info into Col A and Col B (with the same "country": RIC). I wonder if that has to be done along with changing the date from "various" to 12/31/2020. I would try that on my return, but I'm on my 6th (and final) efile attempt.  So if my next efile attempt gets rejected, I have to file by paper - which I REALLY don't want to do, since the IRS is WAY behind on processing paper returns.

EDIT: I called the IRS today (their E-File Help Line; I'm never able to get through to their xxx1040 number), and they said that they have no limit on the number of efile attempts/rejections. So if there is a 6 attempt limit with TurboTax, it's TT's own (artificial) limit, not the IRS's.

[tapper100]

My return was finally (on the 6th try!) accepted(!) after I changed the Form 1116 *Worksheet* (Form "1116 Comp Wks") Part II Date field from "various" to the date 12/30/2020. Clearly the IRS has screwed up their parsing of this field to where it doesn't accept the word "various".
Thanks to everyone here who has suggested this change!

[saldirj]

I have just 1 1099-DIV with foreign taxes.  ($717 from various countries)

I got the latest update from TurboTax and it gives me the following message now.

"We Won't Be Able to E-file Your Return

It looks like you have a form or tax situation in your federal return that TurboTax doesn't support for e-filing. We do support it filing by mail.

--- You elected the simplified AMT Foreign Tax Credit limitation. Print the return and file by mail."

So it looks like TurboTax gave up even though it is not complicated.

Looks like I'm mailing it in.

[lgs0304]

So, from what I'm reading, even if you put in the date 12/31/20, you will not be able to file electronically?  That as long as you need the Form 1116, you can't file on-line?  That's outrageous!

[saldirj]

I changed from the Simplified Tax calculation to the long method and it allowed the e-file and has not been rejected immediately like before.  Hopefully it will go through now.

[Ronlep]

I had this same issue and finally got accepted today.  I am convinced the issue is caused by using the Simplified method for AMT.  Today I did not use that simplified method and it was accepted.  

The only other thing I did was change the "Paid Date" from "Multiple" to "12/30/20."  This may have caused a different issue for some but I think the real culprit for this thread is the Simplified AMT.