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Level 2
posted Mar 12, 2022 4:17:22 PM

Election to not file Form 1116 is incorrect

If you input foreign income and taxes in the passive income category into TurboTax under Foreign Tax Credit because you don’t have a qualified payee statement such as a 1099-R, TurboTax elects not to file form 1116.
This is an error because the IRS requirement that “All the income and any foreign taxes paid on it were reported to you on a qualified payee statement” is not met, so you are required to file form 1116.

 

This needs to be fixed.

0 2 460
2 Replies
Level 15
Mar 12, 2022 4:40:57 PM

pension income is not passive but the general category which required form 1116.

 

Level 2
Mar 13, 2022 8:36:20 PM

Thanks for your answer. If I change the category to general, it does work correctly.
It solves my problem by avoiding the bug in TurboTax for passive category income.