E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[mmmwgm]

Yes.  And All dates marked as "various" must be changed to an actual date format. ie:  12/31/2020 .

I have heard that Turbo Tax will no longer allow e-filing if you have a Form 1116.  I am not sure is that for all forms 1116 or just those which have the simplified method chosen. 

[Foxbat]

mmmwgm,

Do you know the source of the statement that TT is no longer allowing Form 1116 as part of an efiling?  My return and quite a few others were able to efile with Form 1116 for 2020 returns so a big surprise that it has been suspended.  Could it be what you are hearing is that people are getting rejected filings for difficult to identify reasons which most commonly have been caused by using "various" or blank instead of mm/dd/yyyy for dates and using "various" instead of "RIC" for their mutual fund dividends?  I would be helpful to hear from TT if they have suspended efiling in the past 24 hours for Form 1116 as prior to that it has been working.  While anything seems possible, TT discontinuing efiling for returns with Form 1116 seems unlikely.

[olsonep]

I believe they are not allowing e-filing of form 1116 AMT when using the simplified method. This is their "solution" to the problem - don't figure out what is really wrong, don't try to fix the root cause, don't bother to have a single competent developer read this thread. Because maybe this issue will mess with 1000s of customers.

--> The IRS changed the efiling schema (for 2020 forms) to require a date in the date field.  Some people could manually change the date field to a real date (on the regular 1116) and get it accepted.

--> TurboTax leaves the date BLANK when filling out the 1116 AMT form with the simplified method (you see this if you print).  IRS requires you keep using the "simplified method" if you used it in previous years, so this leaves people with no choice waste hours or days and then mail it in. 

   I have an idea!  maybe a developer could just add the date to the 1116 AMT form instead of leaving it blank? I'm sure they can check with the IRS and make sure this is OK.  Then the 1000s of overseas people can be e-filing instead of ef-ing mailing a book to the IRS. 

[headra63]

when I talked to Eric yesterday he said he was emailing me a link to get the amount that I paid to E-file my taxes returned. I do not see a link for that here. Please advise me how I get that money returned to my account as I was told I need to send in a paper copy of my return.

Thanks,

Robin Head

[mistyal3]

I am more than angry about this problem. I decided to mail my return. But, now I wonder about next year. Will TurboTax know all my 2020 numbers and transfer them when I do my 2021 taxes? I think I will switch to H&R Block's program next year. With them you can go right into an office and get help with the program!

[irsispita]

Are you sure the HR Block has this issue fixed ? A quick search indicates they might also have this problem. I am unhappy too, first year I have enough foreign divs to have to file the Form 1116 and it just happens to be the first year the TT has this problem. I might try not using the simplified AMT, I think this is working for some people.

[Foxbat]

Irsispita,

Changing from the simplified option is a big deal to the IRS, as is moving back to it.  So while you can elect easily in the first year to not use it, changing the election is reportedly quite a pain.  

You state you only have dividends so I recommend you review each of your 1099-DIV’s to make sure Box 8 dates are in mm/dd/yyyy format and source in BOTH locations is set to RIC.   After reviewing the 1099’s also check the Form 1116 to make sure there are no “various” entries being shown and source is also RIC.  Most people are having success in e-filing after these checks.  It is a very DETAILED process and a bit of a pain.  Post back if successful or not.

[Vickie P]

Desktop Home and Business version:

I was getting the reject - missing country code. 

I had 3 1099-DIV entries with foreign taxes, and it put the numbers ONLY in column C, even when I had all of them as 'various'. 

But, it was putting '1099 taxes' in the date field in Section II (lines A, B, and C, with money only on line C), so I expect that was the real error.  Everything was correct on the 1116 worksheet. 

I had no luck fixing the date.   When I did an override of the date on form 1116, it complained, and also stopped me when I did error checking.    

If the amount of the tax is 'reasonable' (your definition) switch from a credit to a deduction.   It won't take as much off the taxes, but at least you will be able to efile.   Then file an amended return if/when Turbo Tax gets it fixed (or do paper amended return).  

[hrlmgyrl]

I put 12/31/2020 in the date field on the 1116 Form and miraculously my return got accepted.  Too bad TT doesn't tell people what to do to fix this.  I've used TT for 20 years and never had a problem until this year.  My taxes were getting rejected for a $1 foreign tax paid back in 2014....ridiculous!  TT should have a solution for this before the new filing date in May since this affecting so many people.

[Foxbat]

Vickie P,

Go back to page 18 of this thread and read forward the various posts Foxbat (that would be me) put up about "various" and "RIC".  Might save you some time and money in getting your return accepted as a e-file with your desired elections.

[mistyal3]

Thanks, Foxbat. I have checked that section. Mine is only RIC. The line that TaxPro is rejecting is Part I, line 4a, Home Mortgage Interest. I have a 0, since my income is only from Mutual funds. I had also done the 1116 worksheet. Could it be that they really insist I fill out the Worksheet for Home Mortgage Interest?

Mistyal3

[Foxbat]

Mistyal3,

Reference to Line 4(a) has not come up before in this thread.  Try deleting anything in Line 4 (a) since you say you have no home mortgage interest expense.  Maybe the "0" is causing it to think there is something to track.  If that does not clear matters then it would seem like either fill out the mortgage interest expense form or give TT a call.  Congratulations on not having a mortgage!

[M Tully]

I was getting rejected for E-File. I received the message:

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

Thanks to the TurboTax Community (and no thanks to TurboTax), I was able to resolve the issue and consequently E-File.

First, I must say that I am very, very disappointed with TurboTax. They should have jumped on this problem and immediately fixed it. We are paying for the program (I have TurboTax Premier) to complete our taxes efficiently, competently and without error and this includes the ability to E-File. When I phoned in to TurboTax about the E-File rejection, I was told that the Return must now be mailed if submitting a Form 1116 – this is an unacceptable (and incorrect) answer ! Also, I should not have to waste many hours of my time seeking a solution to a problem that should have been quickly resolved by TurboTax.

In summary, as many in the TurboTax Community have pointed out, the problem appears to result from an IRS change that rejects the use of “various” for the date input into the Form 1116. However, in my case, by going into Forms mode and changing the date by simply inputting 12/31/2020 into Form 1116 (via 1116 Comp Wks) did not resolve the E-File rejection. As basically mentioned in OC59 and Debbie412’s comments, it may be necessary for the entire Form 1116 to be “reset” for the date change to be properly registered in the program. To do this “reset”, I basically followed the procedure mentioned in Debbie412’s comment and it did work for me. Below for your information is my experience with the “reset” and I hope that it may help you:

Before starting, I suggest you print a copy of your “Foreign Tax Credit Carryover Statement”. For the rest, be in Step By Step mode, then choose Deductions & Credits > Foreign Taxes. When asked “Do you want the Deduction or Credit”, select “Itemize Deduction” rather than “Take a Credit”. Continue through the section and when completed, again choose Deduction & Credits, but this time select “Take a Credit” rather than “Itemize Deduction”. This appears to reset the Form 1116 and one should therefore continue through the steps of this section and make any appropriate inputs. Also, due to the “reset”, this also may involve having to re-input historical Foreign Tax Credit carry-over data which, at least in my case, was lost during the reset. Therefore, you should have your previously printed copy of the “Foreign Tax Credit Carryover Statement” handy to re-input the data.

I found that by going into Forms mode and looking at the “1116 Comp Wks”, that the date for Country A was now blank. However, I did not enter anything here. Instead, when running the Error Check afterwards, TurboTax generated an error asking for “F1116 (C1) Foreign Tax Credit Comp Wks – Date must be entered”. Here I entered the date “12/31/2021” rather than “various”. Afterwards E-filing worked and was accepted by the IRS. Prior to the E-File, I did closely review my Tax Return Forms (e.g. FTC carryovers, AMT Carryovers) to ensure that nothing else changed with this reset.

I hope this helps and again thanks to the TurboTax Community.

[rhugg3]

Great information for those using Step by Step.  I also had to work through this, but used the forms view, which I think is easier to resolve this problem.  To bad TTax will not fix this or let us know the issue and how to fix this.  As a premium user also, it is ridiculous to pay this type of money to have a program that does not work or a company (intuit) that will not fix this or acknowledge the problem.

[M Tully]

Hi,

One correction to my prior post - In the last paragraph, the sentence should have been:

"Here I entered the date “12/31/2020” rather than “various”. 

In my original post, I had mistakenly written the year as 2021 rather than 2020. Since I was submitting a 2020 Tax Return, the year should have been 2020.