This will require Form 1116, Schedule B, which will be available in a future product update

[alsn]

I am using TurboTax Deluxe Desktop and on running a Smart Check, I see the message below. I do have Foreign Tax Credit carryovers from previous years.

Check This Entry
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.

1. What does this mean exactly?

2. When will this update be available?

3. Will I be able to e-File?

Thanks.

[TeresaM]

Form 1116 Foreign Tax Credit is now available but we are not expecting Form 1116 Schedule B until March 31st, when it will be available to Print and File by Mail but will be unsupported to e-file. Form 1116 Schedule B is used to reconcile your prior year foreign tax carryover with your current year foreign tax carryover.  Please see the image below.  Filing by Mail generally has delays and the last two years it has had substantial delays. You will be able to print your return after the forms are available but depending on how it impacts your return, you may wish to e-file without the credit, then after all the forms are available and your e-filed return has been processed, file an amendment to claim the credit.

If you decide to wait and file by mail, just re-enter the return after March 31st and take it through Review again.
If you prefer to file without the credit and amend later:

To revisit the section of the return for Foreign Tax Credit:

• Select Federal on the left menu bar
• Click on Deductions and Credits on the top
• Scroll down to the Estimates and Other Taxes Paid section and click on Show More
• Select Revisit/Start for Foreign Tax Credit

This should clear your return but if perhaps the form is still in your return and flags it in Review, you can manually delete the form.

• To Delete a Form go black menu bar on the left
• Click on Tax Tools
• Click on Tools
• Under Other helpful links, click on Delete a Form
• Scroll down and check for 1116 and 1116 Schedule B and if there is either, click on Delete
• Click on the blue Delete Selected Form
• At the bottom Continue
• Repeat until all the forms are deleted
• At the bottom Continue with my Return

This should remove all traces of the form and allow you to file without that error message.

When you come back to amend, this TurboTax Help article has step by step directions to amend your return. You will want to wait until your original return is processed before you submit the amendment. Amend a Return

[alsn]

Wow! No, I do not want to file an amendment. I guess I have to wait until 3/31. What is the reason why it does not support e-filing? Is this issue/limitation specific to TurboTax only or is this unsupported across all tax software? Does anyone know if other software such as H&R Block support e-filing form 1116 schedule B? Thanks.

[alsn]

OLT.com has the Form 1116, Schedule B. I have prepared the return using OLT and FT credit matches TT. I have not yet submitted the return, but it appears that it supports e-file as well.

[ErnieS0]

The TurboTax forms availability list has recently been updated for Form 1116 Schedule B. For the latest info go to IRS forms availability table for TurboTax individual (personal) tax products.

Schedule B of Form 1116 is new this year. The form is used to reconcile your prior year foreign tax carryover with your current year foreign tax carryover. Taxpayers are therefore reporting running balances of their foreign tax carryovers showing all activity since the filing of their prior year income tax return.

[atwyman]

Following the given link, it seems that at least for my version (Download version on Windows) Form 1116 Schedule B will be available for e-File as of 3/11/2022.  I hope that's accurate, and will check back on the 11th.  Disabling eFile or requiring an amendment is a very frustrating product limitation.

[LindseyLO]

Yes, that is correct, this form will be available to you to file on 3/11/2022. 

[apsalm]

I have gone through and tried to manually delete Form 1116 (and sched B) and while the Sched B form was successfully removed, Form 1116 (COPY 1) will not remove, despite the software indicated it has been deleted. when I try to process a final review I am instructed all over again with "Check this Entry: Sch A box or Form 1116 copy should be entered."

How do I proceed with e-filing if this cycle keeps getting recreated because I did pay foreign taxes but want to essentially ignore it for now... It seems like the software forces me to either take a credit or do a deduction and I can't ignore the foreign taxes reported by the broker.

[FangxiaL]

If you wish not to claim the foreign tax credit, go to the 1099-DIV form or the form with the foreign tax paid entry to delete it. It depends on the amount, it might be worth the wait. Form 1116 should be ready in several days.

@apsalm

[apsalm]

Thank you, but if I understood the original message correctly if I wait then I need to print the entire filing and mail it to the IRS??? (Which seems insane-I don’t even know how I’d pay that way).

[DianeW777]

There are certain situations where filing by mail is necessary.  There are options on paying the tax due to the IRS.

1. Pay by check with the tax return when it is mailed.

2. Use the IRS Direct Pay if you want to pay your tax bill now.  You can also modify or cancel a scheduled payment until two business days before the payment date.

[apsalm]

And said form will not be available until 3/31?

how can we provide feedback to TurboTax regarding this poor experience? Had I known before I would have chosen a different service.

[EbonyA]

Form 1116 Schedule B is slated to be finalized tomorrow 3/11/22. You may review the forms availability list @apsalm.

[wiiltn]

It's 3/11 and I've installed an update, run through Smartcheck, made entries, and attempted to file my return.  I'm getting a message that says my Form 1116, Schedule B is not attached.  When I look at the "Forms" tab, I can see the the form.  Am I doing something wrong, or is another Turbotax update needed?

Thanks.

[sandela2003]

It looks like they were a day late with the e-file update that included Schedule B (the paper filing update went through yesterday).  I was able to e-file with the Schedule B today, 3/12, after getting another update.