Form 8621

[MAC18]

I am unable to E-file my federal return because TurboTax does not support Form 8621.  Since I am unable to E-file my federal form, this means I am also unable to E-file any of my state tax returns even though the state returns do not have form 8621.  Given the strong encouragement by the IRS and state governments to E-file, I am surprised TurboTax does not support Form 8621.  For most people making the QEF election, Form 8621 is very simple to complete and there is no reason for TurboTax to exclude it.  It is certainly much simpler than forms such as 1116 and many others.  Less expensive tax software competitors to TurboTax do support Form 8621.  While I like TurboTax, I will strongly consider switching to a competitor's product next year for the sole purpose of being able to E-file both my federal and state tax returns and avoid the hassle, additional time, and expense of printing and mailing paper copies.

[RalphH1]

I certainly agree with your sentiment about the hassle of printing and mailing paper copies! Ideally nobody has that extra headache. But with the tax code being what it is (enormous and complex, unfortunately) there are tradeoffs to making software that’s both efficient and versatile.

Our decision-makers have thus far included certain foreign-related forms (such as the 1116 you mentioned, and even the 8938), and excluded others, in the effort to make TurboTax work very well for as many people as possible. (Other companies have made different decisions on specific forms, of course, but we believe our product is way better overall!)

But these things are constantly evolving, and I like the idea of a “simplified 8621,” just for QEF election situations (which I think you’re suggesting). @MAC1B, TurboTax gives you the chance to take a survey right after filing, and that would be a great place for your thoughts on this subject (as our company really does read and act on them!).

Thanks @MAC1B!

[MAC18]

Thank you for the reply Ralph.  A simplified Form 8621 for QEF filers would help immensely and probably satisfy most 8621 filers.  Honestly, all TurboTax really has to do is include the form and let the individual fill it out manually.   For a QEF filer, this involves simply checking a box and entering their ordinary income on line 6a and their long term gain on line 7a.  These numbers are calculated by the tax payer based on information supplied by the PFIC in the Annual Statement.  For some PFIC's these two numbers are zero every year.  It would be nice if TurboTax could then transfer the numbers we enter on Form 8621 to Schedule 1 (for the amount on line 6a of Form 8621) and to Schedule D, line 10 (for the amount on line 7a of Form 8621).  Even if TurboTax doesn't do the transfer, it is easy for us to do it manually.  The important thing is to have form 8621 included so it can be E-filed.