E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[JacktheRipper]

So, my foreign income and taxes on my TD Ameritrade 1099 included two investment funds of the "RIC" variety, but when loaded by TurboTax automatically, only the total of the two was loaded as a single RIC entry on Column A of Form 1116 Comp Wks. TurboTax reviewed that as fine, but it was rejected by the IRS. Two actions were needed to correct this, using the View>>Forms menu in TurboTax:

(1) I went to Form 1116 Comp Wks directly and in Part 1 I entered the two funds separately in Cols A and B (Special Note: the fund with the largest income must be listed first, in Col A).

(2) In Part 2 I entered the Country A line as the tax paid for the Col A fund, and Country B line as the Col B fund.

My tax liability after these changes were made was the same as before. So far the IRS has not rejected my return yet, but we'll see. I provide this as an early hint of a possible fix for those still frustrated by this....Jack

[JacktheRipper]

And I'm happy to report that the two actions I described above worked! My federal efile was accepted by the IRS. 

TurboTax needs to correct how they download these 1099s. Clearly their method of only entering the total of the RICs does not meet IRS standards to efile. 

[olsonep]

Some of us are getting this error entering a single salary from a foreign employer with nothing being imported into Turbotax. I do have one specific question that could be related. Since it is complaining about the date, could you tell us if your date changed when you split into two columns? And what magic date is making the IRS happy? (I'm trying everything).  Thanks

[Jamimo]

I, too, have had two rejections even though everything checks out in TurboTax review and my own manual review:

"Return ReturnData IRS1116 ForeignTaxCreditSource USTaxWithheldOnDividendAmt - Data in the return is missing or invalid. Please double check your entries."

Interesting that there are different rejections for Form 1116.

[mokubabe]

Thanks for this information.

I decided to just switch my foreign tax to a deduction rather than a credit and my return went through.  I will later amend my return back to a credit.

[JacktheRipper]

As for dates: The date listed on the TDA 1099 was 02/04/2021, but I didn't use this date for anything in TurboTax. Instead, I listed the dates for the foreign tax payments in TurboTax as 12/31/2020.

Over the previous five years I actually used two different CPAs to file my taxes, and they just listed the total of all RICS in Column A, just as TurboTax had done. So it's hard to say that TurboTax did anything wrong, per se. But the IRS seems to have higher standards for accepting efile submissions from TurboTax, and listing both transactions as I described above solved that problem.

[Fossil]

TurboTax released program updates and I was hoping that they corrected the problem.  I e-filed my return which was once again rejected by the IRS with the same error message.  Still waiting for TurboTax to fix this issue.

[tdog49]

All,

Just spoke with a tax rep on turbo chat they are working on a solution and they have this chat as a reference, keep posting possible solutions, and if you have not contacted Turbo TAX do so.

[olsonep]

That is great news. The latest updates did not help. I tried some more date combinations with no luck. My taxes simple (foreign salary in a country with a higher tax rate). I start owing tax if it is not filed as a credit. 

[Djszabo]

I tried to file my federal today and also got a rejection because Of form 1116. How do we escalate this?

[Fossil]

I downloaded the TurboTax update that was released this morning and e-filed my return again.  And again it was rejected for the same reason.  I don't know why I was surprised that it was rejected -- I guess I keep thinking that they know there is a problem and will fix it.

[Djszabo]

Try going into Forms.  Find the 1116 Form.  Go the Part II.  Under the Country column, my system was using the word "various".  I changed this to 12/31/20.  The submission then worked.  Looks like there is a bug in either TT or the IRS system where only a date format is acceptable in that column    Good luck.  

[Djszabo]

ry going into Forms.  Find the 1116 Form.  Go the Part II.  Under the Country column, my system was using the word "various".  I changed this to 12/31/20.  The submission then worked.  Looks like there is a bug in either TT or the IRS system where only a date format is acceptable in that column    Good luck.  

[AlwaysOnTheRoad]

Did not work.  Return rejected.

[poodler]

I'm running into the same issue. The form seems to be filled out correctly and Turbotax has no errors, but the IRS rejects it. I suppose I'll wait a week or so to see if Turbotax fixes the bug, then just mail a paper copy if not.