Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted May 17, 2023 10:09:12 AM

Form 8938: Line 7 and line 8 cannot be entered on the same foreign asset

After fixing a 1099-INT import error thanks to @dmertz, only one obstacle remains before e-filing:

TurboTax 2022 (online) claims that:

"Form 8938 -- 8938 Cont Stmt (COPY 7): Foreign entity or issuer/counterparty information should not both be entered. Line 7 and line 8 cannot be entered on the same foreign asset."

TurboTax offers to fix this by changing the name of the Foreign Entity, but AFAIK it is correct (that is how I e-filed last year without any error) and pointing to line 35a may be a "red herring".

Any idea which line 7 and line 8 is TurboTax referring to?

Lines 7,8 in Form 8938 (the form in which this error is reported) refer to:

  7. Number of custodial accounts (reported in Part V) .


  8. Maximum value of all custodial accounts


which I properly left blank.

So, I don't understand which lines 7 and 8 TurboTax is referring to.

BTW, I compared COPY 7 (the one about which TurboTax complains) to COPY 5. They are identical except for the "Description of asset" (line 29) and ID (line 30). But TurboTax complains about COPY 7 only. Weird.

Any help on the way to fixing this would be greatly appreciated.

Thank you

0 2 2242
1 Best answer
Level 3
May 17, 2023 11:57:38 PM

It turns out that last year, the same exact issue was reported -- without a solution:
https://ttlc.intuit.com/community/taxes/discussion/issue-with-form-8938-for-2021-foreign-entity-or-issuer-counterparty-information-should-not-be-both/01/2484674#M889123 

I managed to workaround it by going again to 

Form 8938

's entire interview process (there is no way to directly edit the forms), not modify anything, just click

continue

,

continue

, etc. until

done

.

This appears to have worked around the bug, because immediately after that, TurboTax took me to e-file, sent it to the IRS, and 29 minutes later I received another email from `TurboTax at Intuit` that "Your federal tax return was accepted by the IRS"

All is well now. 😊

2 Replies
Level 3
May 17, 2023 11:57:38 PM

It turns out that last year, the same exact issue was reported -- without a solution:
https://ttlc.intuit.com/community/taxes/discussion/issue-with-form-8938-for-2021-foreign-entity-or-issuer-counterparty-information-should-not-be-both/01/2484674#M889123 

I managed to workaround it by going again to 

Form 8938

's entire interview process (there is no way to directly edit the forms), not modify anything, just click

continue

,

continue

, etc. until

done

.

This appears to have worked around the bug, because immediately after that, TurboTax took me to e-file, sent it to the IRS, and 29 minutes later I received another email from `TurboTax at Intuit` that "Your federal tax return was accepted by the IRS"

All is well now. 😊

New Member
Apr 1, 2025 11:05:29 AM

I have this issue in 2025. I have tried going thru the whole 'Interest and Dividends' section, guiding me through, but the error remains. In my case it is on copy 3 of 6. I had to delete the form and re-enter it.