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Form 1116, Foreign Tax Credit is now said to be available. However, when doing the Federal Review I get the message "If your forms aren't available, we'll help you complete them on the dates shown." followed by
"Form 1116 Foreign Tax Credit .... Available 0" What in the world does that mean? (please see attached).
Furthermore, when reviewing form 1116 (which is available), on line 35 it has the correct amount, but to the left of that it says DO NOT FILE FORM (see help). That says, in part,
If there is a description to the left of the amount on line 33 indicating that this form should not be filed, the information you have entered on your return indicates that you are eligible to claim the foreign tax credit WITHOUT attaching Form 1116 to the return. See Rules for Form 1116 and how the program determines whether or not Form 1116 needs to be attached to the return for more information. If the program determines that you are qualified to claim the credit without completing Form 1116, the full amount of current year foreign taxes will flow to Schedule 3, line 48 (limited to the amount of tax remaining).
In fact there is no line 48 on Schedule 3, but there is a line 8 that does show the amount of the foreign tax credit, and that does flow to 1040, line 20.
So does that mean that I can file, or not?
This is very confusing, to say the least.
Mr Magoo:
I tried that but I get this message:
--------------------
Now that form 1116 is available, how do I get TT to go through what I have entered on my 1099-DIVs and include that information on Form 1116?
I'm doing a return for a friend of mine. She and her husband lived overseas a few years ago and have some significant foreign tax credit, which has been carried over for several returns (a small amount occasionally being used). This year, it is unneeded because a different non-refundable credit is sufficient to reduce their tax to zero. Given the issues with Form 1116, would I be able to file this return without Form 1116? And if I did, would it be possible to still utilize the carryover in future years if their tax situation changes and they could utilize the carryover? (My understanding is that it is STILL not possible to use Form 1116 if there is carryover -- is that correct?)
1. Go to Federal taxes
2. Estimated and Other Taxes Paid
3. Foreign Taxes
4. Start or Update
As of 3/3/22 , 1116 is available. But, Windows version of Turbo Tax Deluxe does not fill up 1116 and hence foreign tax credit does not show up in 1024.
Any suggestions?
Thanks.
Arun
When is TT going to remove the "error message" about Form 1116's availability for filers that do not need to submit the form because their foreign tax is less than $300 (individual filers)?
Actually, it is:
1. In Step by Step, Select the FEDERAL TAXES tab
2. Select the Deductions & Credits section
3. Scroll down to the Estimates and Other Taxes Paid subsection
4. Start or Update Foreign Taxes
That is my understanding but you need to manually keep track of your credit carryforward. No guarantee Turbo Tax will have it correct next year.
When running Smart Check, I still get 2 errors:
Form 1116 (COPY 1) - Foreign Tax Credit Comp Wks: Total Incoming C/O has a value. This will require Form 1116, Schedule B, which will be available in a future product update.
Form 1116 (COPY 1) - Foreign Tax Credit Comp Wks: Total Outgoing C/O has a value. This will require Form 1116, Schedule B, which will be available in a future product update.
These two errors are accompanied by a table of Foreign Tax Credit Carryovers from 2020 and Foreign Tax Credit Carryovers to 2022 which all seem to have the correct values.
What do I do to clear these errors?
I was told there is nothing you can do if you want to e-file. If you wait until March 31st perhaps you can paper file.
For what it is worth I received a call back from Intuit's Office of the President today. They said despite what is published online they are trying to have Form 1116 including Schedule B available for e-file by March 16th. I know many are moving on already but for those that want to wait supposedly "management is aware" and that there are "all hands on deck". We'll see...
May I have the President's telephone number?
Thank You
You can get contact information from this thread :
https://www.bogleheads.org/forum/viewtopic.php?f=2&t=366971&start=100
I have Foreign Tax credit but no carryover... I was able today to go back into my return, Update that area and then efile without Form 1116. Passed the review and transmitted.
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