E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[keenan85]

Can you explain the “AMT carryover issue”? 

[AlwaysOnTheRoad]

There is an Intuit forum for professional tax preparers using the Proseries software.  There is a thread that involves the Alternative Minimum Tax (AMT) foreign tax credit.

If foreign tax credits exceed the limitation in a given taxable year, these can be carried back one year and forward up to ten years. Election to do so is made in the taxpayer's first tax year for which the taxpayer claims an AMT foreign tax credit. ... It then applies to all subsequent tax years.

Turbotax has acknowledged a problem when there is a Form 1116 and the accompanying 1116 AMT... which calculates the foreign tax carryover.  I have this problem and my return is rejected.  Some state that you can get by this problem by not using the simplified exception process for the AMT calculation but that violates IRS rules if you have begun using the simplified exception on previous year returns.

Turbotax hopes to have a solution in a few days according to that thread.

[AlwaysOnTheRoad]

Program updated posted by Turbotax.  Return still rejected.

[Pjjameso]

Same, still rejected.

[OliveMom56]

If the only change made on the 1116 AMT form by not using the simplified exclusion is the addition of a needed "country" in one box, is there a real danger the IRS will object to switching AMT calculation methods?  Getting a letter from the IRS seems a very arduous and time-consuming way to get one entry changed.

[julian27]

After a couple of rejections with the ForeignTaxesPaidOrAccruedDt error ( 5 minutes from Submission to Rejection ) , I switched AMT calculation methods to not use the Simplified calculation and my return went through and was Accepted 19 minutes after submission.  This is my first year doing AMTFTC form 1116 .  I am a 100% foreign salary, so a pretty straightforward return.  Reviewing the AMT form 1116 now to see the resulting differences, but effort-wise, answering the TT interview questions for Simplified vs non-Simplified was the same.  So thanks for tip folks. 

I am using the online version of TT so I didn’t see a way to do the date override mentioned above.  

[sidjain78]

I had the same issue and this board's suggestion helped me. I changed from 'simplified method' to 'other calculation', answered some extra questions. When I re-transmitted the tax return, it went through smoothly. This simple calculation option has a glitch.

[rabenko]

I have run into the exact same problem with foreign taxes related to my two Vanguard international funds. Same error message, and the same experience trying to find something to correct.  It seems that all of the necessary data is on the 1099-DIV so I'm not sure why we are having this problem. Last year I was able to get the foreign tax credit processed and e-filed successfully.  I am trying to get some online help with this, but it hasn't worked out so far. I may have to just mail them in, but I'd prefer to e-file. Maybe this is a Turbo tax bug.

[rabenko]

I read this entire string regarding the Foreign Tax Credit issues & suggestions.  I went back to the Form 1116 work sheet - Part 1, and listed each of my 3 Vanguard international funds in its own column, starting from largest to smallest foreign income source. (Ex. Col A=largest foreign income source, Col B=intermediate amt, Col C with the smallest income source).  I set  the Country for all columns to "RIC".  In Part II,  "Date Paid or Accrued" was set to the last date listed for each fund on the 1099-DIV.  In my case it was 12/21/2020.  After those changes, I ran TT review again with no errors found.  I have e-filed for the 3rd time, and so far it has been 45 minutes with NO rejection!  I will check again tomorrow morning to see if my FED return was accepted, but right now it is looking promising!  Thanks to all who provided pieces of the puzzle! I think this did the trick!

[AlwaysOnTheRoad]

Does not work for me.  Still rejected.  Did you have an AMT Carryover which many have identified as a problem area?

[OliveMom56]

The three column approach didn't work for me, when I had an AMT carryover from previous years. That's why I followed the suggestion to not use the simplified calculation, which did work (and kept a large carryover from previous years intact).  Not worrying too much about getting a letter from the IRS if you switched calculation methods may be a different cost-benefit analysis if you're a person filing your own return vs. a preparer doing many returns.  I decided to go with the solution outlined several pages above and to take the small risk the IRS might not be happy with a country being added on the 1116AMT by changing the calculation method.  For a preparer, you might reasonably wait to see if TurboTax can fix the problem.

[fgdfgdfg]

I changed from 'simplified method' to 'other calculation' did it for me as well! Thank you very much.

[rabenko]

Both of my tax returns have been accepted.  I checked through my return and I did not have an AMT carryover from 2019. 

[JacktheRipper]

rabenco... Re: "  so far it has been 45 minutes with NO rejection!  I will check again tomorrow morning to see if my FED return was accepted, but right now it is looking promising! "

These were exactly the steps that worked for me with TD Ameritrade, so your situation with Vanguard funds may work as well. Good Luck.

Clearly there are multiple issues relative to foreign tax credits that are being worked in this thread. A fix that works for one circumstance may not work for others. So keep on trying folks! 

[ivydoc]

Thank you for posting this!  After having mine rejected multiple times this past Sunday and yesterday (after installing the latest TT update), this was finally the solution that I needed.  The 1116 AMT form didn't have RIC and date when I elected simple calculation.  After going through "other calculation", the form was populated and the filing was accepted!  Thank you!