E-file rejected due to ForeignTaxCreditSource/USTaxWithheldOnDividendAmt

[saldirj]

I received an email that my tax return was accepted after changing from Simplified Tax calculation to the long form.  Now it locks me into using the long form from now on.

[tapper100]

I had success by putting in a date of 12/30/2020, as opposed to 12/3*1*/2020. I've seen comments that for some people, that has worked (for some unknown reason!).

[prwestmo]

If you can, don't choose the simplified AMT Foreign Tax Credit limitation! The full process isn't that bad.

The caution seems to be that as far as I can tell, once you choose the simplified AMT Foreign Tax Credit limitation on a return, you're locked in for future returns.

[Savadab]

Thank you so much to venkyus for posting his solution.  I had two rejections for the same foreign tax credit issue as others are reporting. After the first, I went through everything and didn't see any issues. I thought "Various" in the date fields was normal. I compared to last year's return, but didn't notice the date difference. TurboTax again said no errors in the return, so I refiled and was rejected a second time.  Neither time did TurboTax suggest any corrections even though their rejection email said it would lead me through the fix. That's when I came to this forum.  

I saw venkyus' solution and also Click's response. I agree with Click that "various" is correct, but the fix of entering an actual date isn't anything the IRS should get excited about, so I tried it.  I went through all three Form 1116 copies and changed the "various" dates to 12/31/20.  I also went back to the 2019 return and noted it showed 12/31/19 and not "various".  I did another TurboTax check and it still showed no errors, so I submitted.  The third times the charm and the return was accepted.  Thanks, venkyus!

[njmpmcc]

Thanks greatly for your simple work around. Your sharp eyes avoided a laborious TT series of un-needed steps like breaking up the Form 116 into 3 parts. Just ne simple change put the return right thru. In the meantime it has also been accepted by the IRS for the first pass. TT made an error in automatically putting the countries into that  date spot. We all should have seen it, but you did. congratulations and thanks again.

[sjb245]

Ditto.  I entered the 1116 data through the "Forms" method; return passed muster in the TT review and check, but was rejected by the IRS.  Shall I delete the self-entered 1116s and go through the step-by-step process?  Or shall I wait for TT to figure out if this is a program issue?

[melkmelk]

Hi @ReneeM7122 ,

Thank you for your advice.

But for me, I have to input the "909 taxes" in column l as you mentioned, it was reported as an error in 1116 Comp Wks, I have followed your instruction (deleted all 1116 related forms and start all "foreign tax credit" related information again), but in the newly generated 1116 Comp Wks, I still get the same error and which prevent me from the e-file, could you kindly advise more on this situation please?

I am so frustrated now, thanks so much!

[njmpmcc]

Although I partially use the step by step view, most of my entries are direct thru the  forms screen.  I find the step by step screens very cumbersome. Of course I have been using TT for more than 20 years and did many sets of taxes on 2 different sets of software for AARP /VITA for210 years. Before I would do anything else, I would check that the values you entered for Schedule B, box 7 for your brokerage statement/s are the same as those in the Form 1116 worksheet and the Form 1116 itself.

[Lem47]

I used the step-by-step method to enter all data. Then switched to forms method and corrected the date problem in Form 1116. That permitted TT to pass and the IRS to accept the return electronically. Don't know if this will work for you, but worked for me.

[Six-Strings]

This error is a still a problem as of April 3. As others described, I had my return rejected three times, each time walking through each step of the foreign tax credit exactly as described by TurboTax. I applied the fix from @venkyus  and it worked.

[LinaJ2020]

There are e-file issues with the Form 1116 in general.  Please sign up for notification here: Form 1116 reject error

Per IRS, if you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on a Form 1116 along with your US tax return.  The amount will show on Schedule 3 line 1 and line 20 on Form 1040.  The issue has been submitted and is currently under investigation.

[skip-whitehurst]

I got the the same spurious error message today, April 15:

/Return/ReturnData/IRS1116/ForeignTaxCreditSource/USTaxWithheldOnDividendAmt - Data in the return is missing or invalid.

After restarting TTax and continuing with the afflicted tax file, TTax recognized the general nature of the reported problem, but beyond directing me to the Foreign Taxes section of Federal Taxes -> Deductions & Credits and telling me to go through the process, it wasn't much help.

So I parsed the message and looked for something about US Tax withheld in the Step-by-Step process with nothing obvious cropping up, then Form 1116 and its its worksheet in Forms view.  After coming up dry there, I looked for a clue on my broker's 1099s with foreign dividends reported. No dice.  Giving up and typing the term  USTaxWithheldOnDividendAmt into Google, this thread came up. Yep, that the same message I got. 4 Pages... hmmm, I must not be the only one!

I have three copies of 1116 because of foreign tax withheld by six countries and one mutual fund.

It appears that TTax is copying the country name into the date field for each country's line in Part II, instead of a date or other keyword. So I replaced each country's name in that part of the worksheet with the date of the last withholding for each country, and 12/31/20 for RIC as suggested. That worked, and my return was accepted! Yay!

Of note, TTax substituted "1099 taxes" into Column l (little 'L') Line A of form 1066 for the RIC instead of 12/31. Whatever. I don't care any more.

Ugh! Hey, TurboTax! This is a problem!

Thank you @venkyus for publishing your finding! 

[Math13]

I got the same reject.   Finally accepted by changing all (two) Dates in 1116 Comp Wks Part II from "various" to 12/30/2020.   Did the IRS change to require an actual date?   If so, why can't TT flag any non-date as an error?

[ajwiii]

You saved the day. Reading through the many threads, some of the later replies provided reasonable explanations of the cause for the error, but your logic and provided work-around (changing "various" to end of year date, 12/31/2021) saved me and others many hours and a lot of frustration.  Thank you!

[BG1978]

Like many others, moving the date from various to 12/31/2020 fixed the problem. In fact, the step-by-step instructions say to do this if there are various dates. Too bad the validation isn't following along.