Form 1116 bug (Line 33) -- Turbo Tax 2024 for Mac Desktop

[tranalli]

After successfully completing the first iteration of my 2024 taxes without errors on Feb 23rd, I came back today, March 16th, to do round 2. There was a software update waiting for me, so I installed it (Application: 2024.r22.030 Build Date: Mar 16, 2025 at 1:08:57 PM).

The software now reports an error, which truly is a software bug. I have 2 copies of Form 1116 (both are legit). On the first copy, the error says Line 33 should be blank. The thing is, it *is* blank! However, line 35 seems to be the one actually in error, as that line isn't blank and it's highlighted in yellow with the amount in red. I have no explanation why that line would be in error, so I'm stumped about that, but that's probably a separate question and possibly related to the real bug.

(Interestingly, copy 2 also has a blank in line 33, but there is no error with that one.)

Anyway, by posting this, I'm hoping that TurboTax support will flag it, since there doesn't seem to be any other way to report a software bug.

[BrittanyS]

Can you clarify if the 1116 was apart of your original return prior to the update or did it after the update?

[tranalli]

As far as I know, the form was already there before the update. I only say that because I just updated the software and ran a Review this time when this new error popped up. It wasn’t there the last time I added new data. 

[BrittanyS]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[tranalli]

Sent from my Mac, per your instructions. The text token is interpreted as a phone number (and edited out automatically), so I'm including a screenshot instead.

Also, there was another update waiting for me when I opened the app. I installed it (Application: 2024.r23.034 Build Date: Mar 21, 2025 at 8:17:33 PM). The error is still there after the update.

[BrittanyS · Accepted solution]

I have reported your issue to the developers for review.  We will post an update once we have one!

@tranalli 

[tranalli]

Thank you. I won't be filing until 4/5 or so. If it's not fixed by then, I think I'll be able to file with the error still extant. I'll post the results of that in either case.

[claude39]

I have the same error.  A quick google shows the same question from 2020:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/foreign-tax-credit-tt-error-form...

The response says that the error message appears if the total in line 35 is less than $600.  

The responses say to just delete the form but I do not know how to do this.

[tranalli]

Good find. Interesting (?) that this bug is still in the software all this time despite being discussed at length. I haven't tried to file my return yet, so I'll keep this workaround in mind. Thanks!

[tranalli]

As noted in the thread, this bug apparently has around since at least 2020. Since it hasn't been resolved yet, I followed the recommendation from that earlier thread and deleted the offending Form 1116 so that I could file my returns. TT wouldn't allow me file without doing this.

[AnnetteB6]

This 'error' is generated when the Form 1116 is not required to be included as part of your return in order to claim the foreign tax credit.  

For example, if your only foreign income is from dividends reported on Form 1099-DIV and the foreign tax paid was also reported on the Form 1099-DIV.  In this case, the foreign tax credit can be claimed without filing the actual Form 1116.

If you are using a desktop version of TurboTax and you look at the Form 1116 in Forms Mode, you can see that next to the error condition being flagged for line 35, there is a note that says DO NOT FILE FORM (SEE HELP).  The help message is as follows:

Text field for Line 35:

If there is a description to the left of the amount on line 35 indicating that this form should not be filed, the information you have entered on your return indicates that you are eligible to claim the foreign tax credit WITHOUT attaching Form 1116 to the return. See Rules for Form 1116 and how the program determines whether or not Form 1116 needs to be attached to the return for more information. If the program determines that you are qualified to claim the credit without completing Form 1116, the full amount of current year foreign taxes will flow to Schedule 3, line 48 (limited to the amount of tax remaining). If you want (or NEED) to complete and file Form 1116 anyway, check the box in the Other Information for Your Tax Return section of the federal Information Worksheet. You will then need to complete Form 1116. Note: If you are not required to file Form 1116 but have previously linked your Form 1099-INT and/or 1099-DIV to the Form 1116, you should disregard any calculations on Form 1116 except for the entry on line 35. This is the correct amount of foreign tax you may claim and which will be entered on Form 1040.

If you do not need to or want to include Form 1116 as part of your return, go to the foreign tax section of your return and check the box that you have entered all of your foreign taxes paid by including the information on 1099-DIV, 1099-INT, 1099-OID, or schedule K-1.  Then follow the remaining questions to complete the foreign tax credit.

@tranalli 

@claude39