E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[Josh2021]

If we mail out the tax return to IRS now, is there any risk that the same error will occur at IRS end when IRS scans our print-out return?  Then it may cause additional headaches.  I think it is best for us to wait to May 17 to see if this problem is fixed by IRS or by Turbotax folks by that time.

Maybe it is my wishful thinking ...

[amankg]

Even I interpreted the same and did the same thing in turbotax 2 days back and my return went through. Try adding your country 3 times and only report income from one country  in Foreign Tax Credit  section. my final form looks like this. I really don't see any issue in having extra date entry without amount written . It is accepted and I don't think IRS will have issue with my return

[MW66071]

TurboTax says there are no errors in my return but it continues to be rejected for reasons related to form 1116.  A TurboTax representative told me this is a known issue that is being worked on.  Based on the dates of the other messages related to this issue, I don't think it is being actively worked on.  

[ShadowLink]

I spent more time with TurboTax support this morning trying various things.  She suggested that I might be able to simply delete Form 1116 and file without it, but she obviously couldn't guarantee that that wouldn't be a problem down the line.  She found some vague instructions about situations where you might be able to not file it.  In any case, she didn't seem aware of this bug.

I've given up - I'll print out my 70 page return and mail it in. 

This has been a terrible experience and a big waste of time.  I'll definitely look into alternative tax software next year.  It's bad enough that Intuit's lobbyists have made it such that our taxes are so complicated we need their software - the least they could do is make it work (even if the IRS changes the schema).

I've submitted a request for a refund for the $20 state e-filing fee that I can't use.  For those in the same boat, you can go here and fill out the form.  It says it'll take 5-7 days to review and isn't guaranteed...

[MW66071]

I changed the paid/accrued dates on From 1116 from Various to 12/31/2020 and the returns were accepted.  

[Riley51]

There is nowhere on my 1116, the worksheet, the AMT version of the 1116 that has an entry of 'various,' so I can't solve my problem by putting in a date anywhere.  I found what I thought was an error on line 18 of the form, where they ask for the number on line 15 of the 1040, and the numbers weren't the same.  However, I did some research on this and apparently, there are adjustments to that number made somewhere behind the scenes.  (Good luck figuring out where or why.)  So I'm back stuck with the original issue and will probably just give up and file by mail, as it looks like TT isn't inclined to do anything about this.  I'm not happy!

[Riley51]

Also, I just noticed that the heading of this page says "Solved" before the subject matter.  If TT thinks this is solved we may need to start a new thread?

[AlwaysOnTheRoad]

This is VERY simple.

If you have a return where you used Simplified AMT on  Foreign Tax credits.

1. IRS changed their form to require what were some optional fields to required.

2. TT does not fill in those fields.

3. TT now produces an error and tells you to file a paper return.

IRS website says they will return to making those fields optional for the 2021 tax year.

Unless TT chooses to act... issue closed.  No fix.

[svp1]

I have the same issue. Does TurboTax plan to fix it?

[AlwaysOnTheRoad]

TT has marked this thread as "solved".  I would interpret that as... they are done.

[OC59]

tl;dr: success by first re-initializing the form 1116 (switch from credit to deduction then back to credit) then use the non-simplified AMT calculation method. e-file accepted.

Like a few others have noted upthread, changing to the non-simplified AMT calculation seems to work. In order to get to that point though, I used the strategy of first switching from foreign tax credit to deduction (to re-initialize the form 1116, I guess), then switched back to credit. I had to re-enter one piece of information, and TT also reported an error for a missing date (it was blank, not "various"), but after fixing that, the returns (both federal and CA state) were now accepted. The only price might be dealing with the IRS objecting to not using the simplified calculation for the credit, but the amount came out the same so I don't think it will matter.

[Riley51]

Thank you so much, OC59!  This worked for me!!!!

[sbsanon]

@AlwaysOnTheRoad TT did not mark this as solved; that happened because I (the original poster) selected a couple replies as the "best answer." From my perspective, the original issue that I posted about is, effectively, "solved" in that TT is giving a clear message now that because I am using the simplified AMT calculation, I must file by mail. That seems like a pretty clear indication that they are not going to be making any fixes to allow e-filing in this situation.

Thus, what I originally posted about has been addressed and I have completed my filing (by mail) per this "solution". I agree that this is certainly less than satisfactory as a solution. However, if I were encountering this newly now and google searching for it, I would want to see the "solutions" right at the beginning of the thread.

Others have opted instead to use the non-simplified AMT calculation as an alternative solution.

The other issues that got discussed in this thread (dates being "various", etc.) are separate and unrelated to the original issue that I was posting about.

[gianali]

After updating Turbo Tax this morning, my return was finally accepted by the IRS. Line 18 of 1116 and line 15 of the 1040 still show different amounts due to certain adjustments derived from the worksheet for Qualified Dividends and Capital Gain Tax. See Form 1116 Instructions. So this was not the reason my return was repeatedly rejected. That reason is still a mystery.

[rhugg3]

sbsanon,

On the 1116 Comp Wks, Part I, line g "Name of Country" should say "Various" if it is from a mutual fund or state the country if told on 1099. On line 1c, where it says Dividends from Schedule B - Put the amount of Dividends that the foreign tax applies to from the 1099 - under column A,B, or C whichever is, or you, are reporting The Vangard 1099 info.

Then in the same column down Part I line h, Qualified Dividends and LT Capital Gains, put the amount that pertains to the same foreign tax/country.

Move down to Part II, Foreigh Taxes Paid/Accrued, Line 8:  check box for either Paid or Accrued.  Then the same as the column above (A,B,C-whichever you used) put the amount of the Foreign Tax Paid under Dividend.

This should fix it.

Do not use the QDI Foreign Income.  This is for the QDI calculations elsewhere.