E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

[RobertB4444]

@Periwinkle65  If the totals match the forms that the IRS has received then it should not be an issue.

[Periwinkle65]

since I wrote this, I learned from 2 Turbo Tax specialists, who demonstrated knowledge in other matters, that there is no problem with e~filing if you have multiple 1116 forms. The only exception is if you use the free Turbo Tax. . 

Thus, I have listed the sum of foreign taxes paid from a brokerage as variou, those from mutual funds as RIC and then foreign taxes paid on individual stocks held personally by each country. 

Thanks to all who assisted with this form which has been the bane of many investors filing. This was made especially so last tax season when it led to many being denied e-filing. 

[theTA007]

Yes, I was successful last year with multiple 1116 forms, though it was painful as those of you who may have looked through last year's comments will know. 

I haven't finished my return this year yet and I am hoping I won't have the pain when I get done later this week.

In the meantime, I like the strategy Periwinkle65 is using (as also suggested by others) of listing broker forms as "various" so that TT will link to them properly and individual countries for individual stocks (to ensure no difficulty with IRS if they ever ask why I didn't identify individual countries to meet the requirements where it is simple to do that).  I don't have any mutual funds held outside of a brokerage account so I don't need to use RIC but I like that idea too. 

[Periwinkle65]

I need to make a correction in the information I provided. Despite the assurance given by TT representatives, my Federal e-filed return was rejected . The error message was obscure, but it boiled down to the fact that the IRS only permits one 1116 Form submission for passive income. 

[theTA007]

The IRS does not have any restriction on the number of forms 1116 you can file.  I have needed 2 for several years and my TurboTax returns have been efiled and accepted, though 2019 and 2020 were painful, taking several iterations each year due to TT limitations.  You're up against  TT's very poor programming on this topic, not an IRS restriction.   

I won't be able to try to file this year for at least 2 more weeks as I don't have all my K-1s yet, so I can't help you with respect to 2021 status or any new ideas for resolving this problem. 

[irsispita]

I think this year IRS and/or Turbotax fixed the bug and I did not have to do any of the gymnastics I did last year. I have pretty much the same form as last year but this year the return was generated automatically and accepted without any issues. Thanks for that, whoever did the work !

[lilli2]

Hi, -- So, I wonder if there is a finalized summary of this 35-page thread that seems to contain many variations of instructions for how to fill form 1116 on TurboTax?

The interview questions in the TT software are a bit obtuse - jargon terms are not defined, the help is not very explanatory, and it seems from the thread that many people have had trouble related to this form. 

[Periwinkle65]

I have not yet filed my 2023 taxes, but I was given a solution from the IRS which has worked for recent years. I simply place of all foreign taxes  from individual stocks in one column marked VARIOUS and place mutual fund foreign tax dividend income in another column marked RIC . This method can be applied with any foreign tax on passive income. The IRS representative emphasized that only one form is necessary as long as all the taxes come from passive income. 
This form  has been an on-going problem . My impression is that TT altered the software about 3 years ago which made it possible to E-file with the “various” designation. Thus, earlier suggestions may not be relevant. 

[theTA007]

Periwinkle65, thank you so much for responding with this summary.  I was going to try to do something similar this afternoon. 

I believe you are right that the TT software was modified a couple of years ago which made the issue less onerous but it did not completely solve the issue.

I haven't been using the exact solution you proposed.  I have been identifying a couple of countries (which account for most of my 1116 income) separately and putting the rest in "Various".  Your solution sounds simpler than what I have been doing and I will try it when I get around to completing my taxes over the next few weeks.

[lilli2]

Hi, yes thank you Periwinkle and also TA007!