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

Forum|Forum|4 years ago
March 4, 2022
1 reply
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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.

tmunoz

Level 13

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

apsalm

Level 2

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.

apsalm

Level 2

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

Thank you for this response @Ebon ! I've tried re-filing and in the review the same error comes up -- "Form 1116 (COPY 1) - Foreign Tax Credit Comp Wks: Qual Div and LT Cap Gains should have a value of at least...." I don't understand how to go to wherever I need to go to enter this information. Thanks again,