Missing 2021 Form 1116

[JES33]

@vident   I’ve been experimenting with HRB. I was able to transfer the usual information from TT 2020 to HRB 2021. I didn’t even think to see if I could have transferred all the data from TT 2021 so I started over with that. Don’t know if you can do that but I’m glad I entered everything myself so I could become familiar with the interface. Also, I had no problem downloading everything from my investment firm. I did not need form 8938 so I can’t answer that question. I was happy with HRB but haven’t tried efile  yet. If I can’t efile, I’ll wait to see if or who, TT or HRB, comes up with a solution first. Hope I answered your questions. 

[alsn]

I could not/did not use foreign tax credit in 2020 and because my return was rejected by the IRS, I deleted form 1116 before resubmitting (I believe, based on the suggestion on this forum). However, I have a carryover from 2020 which I can and want to use this year. Will this be an issue? I have printed and saved the Foreign Tax Credit Computation Worksheet for 2020 for my records and will have to manually enter carryovers from 2018, 2019 and 2020.

PS. This is getting really frustrating, and I wish I had not invested in foreign funds in the taxable account :(

[rpromm]

It is now 2022/03/05 and no update for form 1116 as yet.  Simple question: should we wait for Turbotax to incorporate the form into the formset or should we just download it from the IRS website and file by mail?  I hate to file by mail cuz it takes forever to get your refund.  Is anybody from Turbotax reading this thread?

[neenus]

Form 1116 is available at TT as of 3/3/2022. If you are using TT Desktop version, you just have to upgrade software by Clicking 'Online-> Check for updates'.

I followed those steps and am able to now finish the Foreign Tax Credit section however the issue is still with 1116 Schedule B (required if you are using Carryover Foreign Tax Credit from past years and/or have Carryover Foreign Tax Credit from this year).

Hope this helps.

[oystersauce]

OLT can handle Schedule B and the refund amount for both federal and state were the same as TT's refund amounts. I e-filed both federal and state for around $16. You can e-file federal for free but I chose to pay the $8 for the extra benefits. Just make sure the fill out both 1A and 1B of your 1099-DIV on OLT. 

[jmztt]

Try deleting your vanguard import and do a new import

Also you have to manually enter the total amount of foreign dividends received. The import does not do that. 

[roylbeatty]

Form 1116 is still not totally available as of 3/6/2022. When I try to file, Turbo Tax states that I can still file by mail. What's the purpose of using Turbo Tax if I have to file by mail. It is part 2 of the form, which shows Carryover that is the problem, according to my Turbo Tax. States it will be available in a future update. I wonder if other tax prep software is having the same problem.

[johnosen35]

The IRS released the 1116 Schedule B in December 2021. It is used for both carryovers from prior years and for carry forward to 2022. Hopefully they will get it done before filing deadline. I bite the bullet and filed return by paper. I do not recommend anyone forgoing a proper refund of foreign taxes. 

[asanghvi]

I am using Deluxe turbo tax on a Windows 10 PC .   On March 15, I was able to complete form 1116 by going in to step by step mode.

[roylbeatty]

Today is March 6. How did you jump into the future? Are you talking about last year I hope. Or did you have the date wrong?

[roylbeatty]

that didn't work, I tired it.

[wheman]

I just did that and took the deduction. It appeared to work. Thanks

[johnosen35]

The deduction is not as favorable as the tax credit. As a CPA tax preparer I recommend filing paper for anyone who needs 1116 schedule B. No guarantee it will be able to be efiled when TurboTax says it will be available 3/31/2022. 

[JES33]

@johnosen35  If I enter $673 in foreign tax (actual) TT gives me $161 towards my refund.  If I enter $600, limit for married/joint return to avoid form 1116, it gives me $490.  What's with that?  Seems counterintuitive.  Is it okay to do that or will IRS flag it because it doesn't match what's on the 1099-DIV?  I also bought HRB tax software and entering $673 gives me the $490.  One of these software programs is not calculating properly.

[johnosen35]

The 1116 is not populated to give you full credit or you are limited when you complete 1116. Under $600 reporting does not have a limitation. You would be giving up the amount over 600 if you change the amount on your 1099 to 600. I have seen it done before.