E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[Mtnbyke]

Maybe I didn’t make myself clear.  I want to use the foreign tax credit BUT since I need to file form 1116 and 1116 AMT, TurboTax will not, at this time, allow that to happen without filing my return wit paper. Since I do not use the standard deduction, I can still eek a bit out by switching from foreign tax credit to foreign tax deduction.  That would cost me the aforementioned $146. 

I really can’t believe that TT can’t fix this issue. 

Anyone know if H&R Block’s software can import my TT return!

[swabbinsky]

the deduction is useless unless you can itemize.  I think it should be obvious to TT that their customers need this fix.  If I use the deduction I leave hundreds on the table.  Dumping TT and having a CPA do it would in fact save money over the deduction.   Part of the price of TT is the cost for E-File.  In my opinion, TT is not living up to the implied warranty.

I'm not sure what work-around you are referring to.  The only one I've seen that others have successfully used is the one that TT itself says I can't because the IRS doesn't allow it.  If I have missed something, please let me know.

I have in fact entered all the foreign income etc.  Like so many others here, I've done this successfully for years.  At this point I have also re-done the entire return from the beginning and very meticulously entered everything again.  Like most others who have reported this, I ended up in the same place.

[steckasaurus]

Well, I've gone way down the rabbit hole now. I've gone onto the IRS website and used their Free E-File Fillable Forms, cutting and pasting everything from TT into the IRS forms. Submitted, and it has been rejected. Here is the issue, which may or may not be the problem of others on this forum: I have a Foreign Tax Credit carryover from a previous year (i.e. line 10 of Form 1116 is not blank). However, the IRS rejection states the following: "If your entry on line 10 is correct (not blank), you need to file a Foreign Tax Credit Carryback Computation Statement. If your entry on line 10 is erroneous, delete the entry. A limitation of Fillable Forms is that you cannot use Fillable Forms to e-file your return if you are required to attach a statement." So, they require an attached sheet, but they don't accept e-files with this attached sheet. Intuit may actually not be at fault; it might be the IRS that is the problem. I've tried eliminating the carryover and seeing what that does to my refund. For me, it is rather significant. I need to decide if I want to eliminate the carryover and reduce my refund or print a paper copy. I hope this helps some people understand the potential issue.

[JeanAtkinson]

@steckasaurus my form 1116 line 10 is empty (no carryover), so apparently there are multiple conditions that can trigger this problem.

[lewisinde]

After multiple rejections, changing the date in Part II from Various to 12/31/2020 solved my problem.

[LinaJ2020]

This 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 on the mutual funds to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on Form 1116 on your US tax return.  The amount usually is reported in box 7 of your Form 1099-DIV.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  

[JeanAtkinson]

This thread is very confusing because people are discussing several very distinct issues. What many of us are seeing is not that the IRS is rejecting the return, but that TT is refusing to e-file it in the first place, with the error "You elected the simplified AMT Foreign Tax Credit limitation. Print the return and file by mail". So the issue that's supposed to be under investigation is not at all the right one, and will do nothing for us!

If you are one of the people getting this error, I suggest moving to this thread, which is exactly about this issue and not about anything else. 

[LinaJ2020]

My post from above only refers to the e file error due to "ForeignTaxesPaidOrAccruedDt on Form 1116"

If your e file error is due to simplified AMT Foreign Tax Credit limitation, you will need to paper file. 

@ JeanAtkinson

[cici1949]

LinaJ2020, are you saying that TT will not be providing a fix for the AMT Form 1116 using the simplified method?

If so, why can it not be fixed?

[Lynchs826]

New to this 1116 rejection thread ... FWIW, I compared the underlying worksheets for 2019 and 2020 and found that TT added a smart worksheet box at the top of Part II on 2020 that wasn't present in 2019.  I checked the boxes that indicate that the source of the income was 1099-DIV or INT, which caused the dates paid or accrued to change from "various" to "1099 taxes".  I saved and re-submitted.  I've received confirmation that the IRS accepted my return (after 6 rejections).  Just waiting on Pennsylvania to do the same.

Update:  PA has accepted my return also.

[rhugg3]

Wow, did not know how I missed that.    Interesting is that if you place your mouse on that checkbox and right click, the menu says "about datebox".

I have two 1116 forms, one for 1099's and one for k-1's.  The K-1 is Copy 2, which shows up in the forms list on the left (along with the Comp Wks).  My 1099 is Copy 1, which did not show up in forms list (although the Comp Wks did).  I could only access it by using quickzoom button at the top of  Copy 2.  AFTER Checking that box in the 1099 Smart Worksheet  Part II, It appeared in the list at the left!  GREAT CATCH!

[FalGalME]

Lynches826: if indeed this does work for all, I hope TT gives you a huge monetary reward.  Unhappily it's too late for me to try your particular solution because after nine rejects I gave up and filed a paper return.

[swabbinsky]

I checked the box and yes the date changed to 1099 taxes but TT still says I can't E-File. 

[swabbinsky]

Found that checking the Form 1116 AMT (COPY 1) did nothing but checking it on the Form 1116 (COPY 1) changes the date to 1099 taxes on both of them.  But the checkbox on the amt version did not check itself.

When  I generated the print, the 1116 & amt date still has 1099 taxes. But there is another form 1116 in the printset that still has 12/30/2020. 

[rhugg3]

My guess is that form is from some other income with a foreign tax that is not from a 1099.  An MLP (K-1) maybe?