Turbotax says "The Foreign Tax Credit Area Will Be Ready Soon," and that the IRS doesn't have a form 1116 for 2021. But they do

[davidmanheim]

The form exists, But I can't file with Turbotax. When will Turbotax fix this bug / missing necessary feature?

[HelenC12]

The IRS has not yet approved the TurboTax Form 1116 Foreign Tax Credit for use. Please see the TurboTax forms availability FAQ for the status.  

Note: There are two form 1116's. Please check the status on both forms.

[davidmanheim]

I agree that Turbotax claims that it is not available. But the IRS disagrees.

[DaveF1006]

Yes. According to this Turbo Tax link, the 1116 form will be available 2/24.

[hardrightedge]

@DaveF1006 

Thanks for that response.  Form 1116 availability is now updated to March 3.  Form 1040 is also shown as not available for filing.  Is that expected with Form 1116 unavailability or do I have a different problem to be resolved?

[ErnieS0]

You cannot file your tax return if all the forms in your return are not final @hardridge.

TurboTax is showing Form 1040 not being reading because of Form 1116. The IRS added a brand new form – Form 1116 Schedule B this year, which is causing a delay.

[HJ66]

TurboTax Premier 2021 (CD) does show a form 1116 that states "Do Not File". The IRS website shows a new form 1116 that looks a little different. Will the updated version fix the error that (incorrectly) doubles the  foreign Tax Credit?

[SusanY1]

Yes, once the correct version of Form 1116 and it's two new Schedules (B & C) are updated and approved by the IRS, the issues that customers are experiencing related to foreign tax credits, including the doubling of the credit, should resolve.  

[vandesc]

This is all great information but the question is WHEN will the software be updated to handle the updated 1116? I don't mind waiting but there's NO WAY I'm filling out that form by myself and trying to make it mesh with the rest of my return... Just tell me when to check back and I'll be a lot more relaxed...

[HJ66]

On 3/3/2022, at 2:15 PM, I checked for updates. There were some, so I downloaded the updates. I was VERY excited to see that form 1116, Foreign Tax, had been updated. BUT, my Foreign Tax credit was listed as $108 on line 35, which is DOUBLE what it should be. On form 1116, part II, the  Foreign Tax is CORRECTLY listed as $54. What gives? When will this error be fixed?

[DaveF1006]

It depends. It sounds like the credit was claimed twice. To clarify, was the original Foreign Tax credit reported on a 1099-DIV or 1099 INT and then you entered it a second time claiming the credit in the Foreign Tax Credit section of the return? If so, delete this from the the Foreign Tax Credit portion of the return.

1. Click on Deductions and Credits at the top of the screen
2. Scroll down to Estimates and Other Taxes Paid and click on Show More
3. Click on Start or Revisit next to Foreign Taxes and then select Yes
4. If you see an entry made, delete the entry
5. Also a Form 1116 is not really needed unless your foreign tax credit is more than $300 or $600 if you are Married Filing Jointly.

@HJ66

[subrian]

I'm trying to fill out form 1116 and Turbotax keeps asking me to review the Foreign Tax Credit Carryover to 2021 and the Foreign Tax Credit Carryover to 2022.  Both amounts are correct, so I click "Continue."  Then Turbotax asks me to Review the same numbers again...and again...and again.  I've had these carryovers every year since 2013, so they're not new.

Turbotax also tells me I can't efile this year, which I've done every year for the past several years.

What gives?  How can I complete this form and efile?

Thank you.

[DawnC]

If you have Foreign Tax Credit carryovers, you need the new IRS - Schedule B, Form 1116.   Inst 1116 (Schedule B)

Form 1116 with Schedule B is tentatively scheduled for 03/31.   Since your return does need the Schedule B Form 1116, which is used to reconcile your prior-year foreign tax carryover with your current year foreign tax credit carryover, you won't be able to file (by mail) until 03/31.   

With respect to each separate category of income, if you are filing Form 1116 that has a foreign tax carryover in the prior tax year, the current tax year, or both, you must file schedule B for that separate category of income.   

@subrian

[Edited 03/04/22 | 10:18 PST]  

important typo corrected 

@subrian 

@hardrightedge 

[hardrightedge]

@dawn 

Form 1116 Schedule B is unsupported for e-filing according to the forms schedule.  This runs counter to your most recent post.  Explanation?

[DaveF1006]

As of now, it is correct that Form 1116 Schedule B is unsupported for efiling.

@hardrightedge