E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[mariabeth58]

Great suggestion! I also just changed the date to 12/31/20 and my return was accepted after e-filing.

[Josh2021]

My return has same issue,  I tried many times and all are failed. Today I tried to over-ride Form 1116 line 18 to match with line 15 on Form 1040, it allows me to do it, but with over-ride on, Turbotax software does not allow me to e-file it.

Very frustrating...

[rakeshca]

I tried changing the date to 12/31/2020 as well as 12/30/2020. But still didn't work for me.

(E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116)

[gg1961]

All

There are two separate issues being raised on this thread as far as I can see. 

(1) My (and many others) situation where if all the following are true your efiling will fail with the message on the subject line of this thread. If anyone has the following and has had their return accepted it would be great to know but I cannot see that anywhere in the thread to date. 

- you have foreign income and have entered 12/31/2020 to the relevant date question leading to a Form 1116 being generated; AND

- you are subject to the AMT calculations; AND

- you elect to use the simplified method for AMT (which you are advised not to change without IRS agreement if you have previously used this method)

In this situation, as in previous years the 12/31/2020 date is put into column A of the standard Form 1116 and there is no date in column A of the AMT version of Form 1116 which is also part of the IRS return. 

It has been suggested that the problem is that the IRS now check for that date on the AMT form but if you use on-line Turbotax you cannot enter this manually. I also have not heard anyone confirm that making only this change (presumably using a locally installed version of Turbotax) does in fact work and enables a successful e-filing. 
What does appear to work is changing from the simplified method for AMT but I (and some others on the the thread) do not want to do this because of the Turbotax advice as above. My current plan is to hope Turbotax fix this before filing date and if not send the return in by mail (sigh). 

(2) Others have had what appears to be a completely different problem relating to the use of "Various" for dates for Form 1116 including for dividends.  This is apparently fixed by changing the date to 12/31/2020. However, this is NOT the same issue as the one described above relating to the AMT Form 1116. It would be better if this was on a separate thread. Unfortunately the Turbotax "issue has been submitted" message referred to in this thread talks about this case (2) and not the situation that many of us find ourselves in which is described above.

If anyone from Turbotax is reading this I hope this clarification helps and that someone can confirm that issue (1) above is also being worked on and can give some estimate as to when it will be fixed. 
 

[olsonep]

A locally installed TT does not let you change the 1116 ATM date field and e-file (only print). When using simplified vs non-simplified, the difference seen on the 1116 ATM form is the data in column A (which includes the date).    And... at least with a locally installed TT, I attempted to e-file at least a dozen times before it finally went through (using incorrect data that I plan to amend when this is fixed). 

Turbo tax is making huge engineering, support, and PR mistakes here. I told them in this thread and on the phone within days of the forms being available (February) that this is going to affect, potentially, every customer filing a 1116 form and that it needs to be escalated and fixed NOW. I guess I was brushed off as being dramatic. I guess it is time to leave an amazon review.   

[hongcho · Accepted solution]

I tried it again today. TurboTax (Windows) had an update.

This time, when I tried to e-file, TurboTax itself is rejecting it saying

"We Won't Be Able to E-file Your Return

"It looks like you have a form or tax situation in your federal return that TurboTax doesn't support for e-filing. We do support it for filing by mail.

"Here are the details:

"You elected the simplified AMT Foreign Tax Credit limitation. Print the return and file by mail.

"Don't worry, even though you are unable to e-file your return, we'll still help you file your return by mail."

So, it seems TurboTax gave up (?) on the simplified AMT Foreign Tax Credit limitation.

I am really tempted to change this.

[grsing]

I just tried it in the online TurboTax and got the same error - basically saying I must file by mail. Looks like that's TurboTax's "solution".

Will definitely be looking at other options for 2021, not being able to efile is a big drawback.

[SBtaxquestions]

I've just downloaded the latest update for the Mac desktop product and now get the same message when trying to e-file:

@TurboTax - are you going to fix this before the new filing/payment deadline of May 17th? Is it worth waiting for instead of paper-filing? Paper filing is a major pain for someone who lives overseas and whose return is 250+ pages thick...

@community - are there any other solutions out there that allow e-filing of an expat's return? Thanks...

[JMac11]

Turbotax definitely has a problem with it's Form 1116, Foreign Tax Credit.  If you fill out your form exactly as you did in 2019, it will be rejected.  After three failed attempts and reading all of the responses, here is how I was able to get my return accepted.

1. Qualified dividends and long term capital gains.  When my return was first rejected, I followed Turbotax recommendation and went to deductions, foreign tax credit.  To my surprise, there was an additional question, that was not originally asked by Turbotax...the amount of qualified and long term capital gains that were included in my Foreign Source income.  I completed this and resubmitted.  Again, rejected.

2. Date Dividends Paid.  If you indicate that your dividends were paid at various times, your return will be rejected.  Change this date to 12/31/2020,  either in the dividend submission section or on the form itself.  First try and return was accepted.

I should also note that my dividends do not come from a RIC  (Registered Investment Company).  I did see a lot of comments about this.  I own the stock directly and thus complete the Other section in the input schedule and list the countries as Various.

Hope this helps.  This is a very frustrating issue and it took several hours and all of your ideas to resolve.  Not what I expected from Turbotax.

[Josh2021]

I updated Turbotax this morning (3/18/2021). 

After the update,  I try to e-file my return, and I receive the following notice:

We Won't Be Able to E-file Your Return

Here are the details:

   You elected the simplified AMT Foreign Tax Credit Limitation. Print the return and file by mail.

So I can not do e-file.

Here are some of my findings, I hope it helps to resolve the problems.

Amount auto-entered by Turbotax in Form 1116 AMT: Foreign Tax Credit for AMT: Line 18 is lower than the amount in Line 15 on Form 1040.  

In the form 1116 AMT line 18 instruction: Individuals: Enter the amount from line 15 of your Form 1040.  or Caution: If you figured your tax using the lower rates on qualified dividends or capital gains, see instructions.

Form 6251 Part 1, line 4 has Alternative minimum taxable income amount.  But it is also a different value.

I can not figure out the source of the line 18 value.

Is this the reason for my e-file rejection? maybe not?

It is worth to check it.

Anyway, Tubotax folks, please fix the problems quickly so I can e-file my return.

Thank you.

[ShadowLink]

I also installed the update today, and this is TurboTax's "solution"?!?!

That's unacceptable!  This thread is 13 pages long (so far), many customers have spent hours on the phone with clueless (and sometimes rude and incompetent) customer support people, and waited weeks for a fix, and this is it?  @LinaJ2020 @MaryM428 

Even if we can print it out and mail it in, how do we know that it's actually correct?  Clearly something isn't right with it if the IRS keeps rejecting it.  I don't want to mail it in, just to get a notice from the IRS (presumably months later instead of 5 minutes) saying that there's a problem with it.

Does anyone know of any software that can import .turbotax2020 files and can actually e-file a return?

[baddogg · Accepted solution]

link to IRS web site:

https://www.irs.gov/e-file-providers/free-file-fillable-forms-help#knownsoftware

basically, figure it your ownself or file a paper copy;

otherwise we'll fix it for next year (maybe)

[rakeshca]

It seems like a very irresponsible act on part of Turbo Tax. Someone had suggested earlier that we should leave the feedback at Amazon where many of use had bought the software. Hopefully, it will make Turbo Tax take their loyal customers more seriously in the future. 

https://www.amazon.com/TurboTax-Business-Software-Exclusive-Download/dp/B08HSJ7CTV/ref=lp_[phone num...

[Josh2021]

https://www.irs.gov/e-file-providers/free-file-fillable-forms-help#knownsoftware

So basically IRS side made parts of Form 1116 required
entry fields, when they should have remained optional for tax year 2020.

I am wondering if this is the case, can Turbotax software feeds the IRS with those so called required fields when we do e-filing?  It seems to me it should be possible.

[sbsanon]

Thanks to those of you who posted about the new message in TurboTax and the IRS known issue. I also got the same message (unable to e-file due to using simplified AMT) in the online version of TurboTax this morning and have proceeded to mail in my returns. I agree with a previous poster that it is odd they can't just provide the data for the newly required fields, but it seems that TurboTax is essentially declaring they are not going to fix it this year so I didn't see a reason to wait any longer before mailing.