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

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

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.

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.

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.

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.

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

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.

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

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).

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.

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.

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

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.

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.

Thank you for letting me know.  I've opened TurboTax, got the update, finished up, and filed.  It's a relief to be done.  Thank you again. 

I also eFiled successfully today (3/12) so I think the issue is resolved.  Thanks!

Yes, the software has been updated, and form 116 schedule B is available for efiling.

Hi,

I requested a refund due to the set up of this being very misleading for users. After completing all the available forms, the online platform led me to the payment page, which I believed would be the last step before I could e-file. But after payment, it found the error and told me that I could neither e-file nor send by mail.

The platform should have asked me to review first before payment because if I had realized that another Form was missing and that this year's tax filing would be more complicated than the last, I would have requested support instead of going through with payment.

Also, when I tried to request refund, customer service turned me down with a message that the date for this Form was an estimate and that it would be developed later. However, that is not the real reason for my request refund. And now I have no idea who to go to for support on my case since they closed my file.

This is terrible customer service and I am very disappointed in TurboTax as I have been a multi-year customer and this year's poor design makes me reluctant to do any future taxes through TurboTax. I am inclined to switch to another service provider in the future.

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,

@apsalm I believe it is asking for your foreign dividends portion of dividends. You may look at this thread or search for your exact error on this forum.

Solved: Error "Form 1116 (COPY 1) -- Foreign Tax Credit Co... (intuit.com)

If you entered a 1099-Div with Foreign Tax, that amount of tax carried over to the Foreign Tax Credit section.

Then, in the Foreign Tax Credit section, you need to enter the amount of the Foreign Dividend associated with the Foreign Tax amount you entered in the 1099-Div section.

Your broker statement should tell you the amount of Foreign Dividend income you received. Choose Country 'RIC' if the amount of the Foreign Dividend is from several countries.

If you received a Foreign Dividend (but did not receive a 1099-Div) report the dividend as it you had received one.

Click this link for more info on Reporting Foreign Dividends.

Glad that Schedule B is there.

However, when I go to the forms, and I look at the 1116 Comp Wks, all of the carry overs are empty (Foreign Taxes, Utilized, Carryover), except for 2021. I have used this form for the last 5 years at least, and I am quite certain that I saw the form populated before last weeks update.

I am missing something, that I am doing wrong? If not, any advice how to populate the form for the last years?

@tsc1 If you have your last year's return saved as PDF, you will find Foreign Tax Credit Carryovers there. You can input the numbers from here. TurboTax employee experts may have other solutions.

Fyi - my return was accepted by the IRS. It included form 1116, Schedule B and carryover computation worksheet. Hope that experience with TruboTax is better next year! Thank you all.