Smart Check Error Form 1116 (COPY 1) Foreign Tax Credit Comps Wks: Paid/Accrued Boxes must be entered.

[dansadler]

It gives me the following options:

- No entry

- Method: Paid

- Method: Accrued

I haven't paid any Foreign Taxes and have entered that I haven't paid any Foreign taxes.  I do have an international rental property, but the income for that property is below the minimum threshold at which Tax is paid in the country where it's located.

I have used TurboTax and filed my Taxes for the previous 2 years, including this properties rental income, and never come across this problem.

Thank you.

[TeresaM · Accepted solution]

If you did not have any foreign taxes paid, you may select "No Entry" for this. Because it says "Copy 1"  it might be there have been two copies of the form generated and that is causing the error message.

Please check Delete a Form and delete any extra copies of Form 1116.

• 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.

[dansadler]

Thanks.  That solved it.

[destrumbauersr]

i have foreign income and taxes (small amount) from mutual funds.  the tax (22.82) shows on 1040.  but i get error msg

[deb46]

I'm also getting this error. I did pay foreign taxes that were reported on a 1099-DIV, but I don't know which box to choose (paid or accrued). How do I decide? And why didn't TT figure this out? Thanks.

@TeresaM @dansadler 

[MarilynG]

Select 'Paid' for the Foreign Tax reported on your 1099-Div.  

If you record income when you earn it rather than when you get paid, you use the accrual method. 

If you record income when you receive it, you use the cash (paid) method. Most individuals use the cash method.

When TurboTax starts preparing Form 1116 for you, it doesn't yet know what type of income you are reporting (passive dividend income, general wages, rental income, etc.)

Click this link for more info on Form 1116. 

@deb46