Turbotax refuses to include form 1116 and to generate Schedule B (form 1116)

[martoro]

I'm using Turbotax Premier 2025 for Desktop. This has been a bug for years, but there were workarounds before. Now I'm at a loss how to make Turbotax to include form 1116 in the return. No foreign tax was applied which is why it probably thinks that it is not needed, but I want to file it for the foreign tax carryovers. It includes the carryovers in 1116 Wks, but it doesn't generate Schedule B for form 1116. I also clicked the checkbox in federal info wks that says "Include form 1116 even if not needed", but this has no effect. I tried deleting the form and redoing it to no avail.

How can I force turbotax to generate Schedule B (1116) and include the form in the return?

[Vanessa A]

If you are trying to report a foreign carryover credit select the following:

1. Federal
2. Deductions and Credits
3. Select Take a Credit
4. Continue through until you get to the screen that says Foreign Tax Credit Carryovers.

This should generate form 1116 and include it with your return. 

[martoro]

Unfortunately, it doesn't. I tried many variations. Including clicking the checkbox in the Federal Info Worksheet in Part VI that says ""Include form 1116 even if not needed".

Form 1116 and its Wks will be generated, but not Schedule B. If I try to find Schedule B by explicitly clicking "Find a form" button in the upper left, it will find it and it will be filled out. I can then print only this. But no matter what I try, none of them will be included in the return. Seemingly because the foreign tax credit is not used this year. But that's the whole point I want Schedule B (1116), to carryforward.

It genuinely seems a bug. Could someone take a look?

[DaveF1006]

The IRS does not technically require you to file Schedule B in a year where you are neither generating a new carryover nor using an old one. However, the burden of proof for those carryover amounts always rests on you. This is why TurboTax won't generate one this year. It's not a bug. It's strictly not required.

The IRS doesn't actually "track" your carryover balance for you in a central "bank account" that you can log in and see. They rely on the most recent Form 1116 they have on file.

If you skip Schedule B this year, you can enter your carryover amounts when you file next year. The software will create a new Schedule B, and the IRS will review it. As long as your numbers line up with your 2024/2025 filings, they usually accept it.

Be sure you keep a copy of your Schedule B for this year in case if there are questions that may arise later. This is your proof that the carryover exists in case if the the IRS inquires about your carryover in later years.

If you are insistent about including Schedule B this year, you can print and mail your return, which will include Schedule B in the return.

[martoro]

I am generating a new carryover this year. There are foreign taxes paid that cannot be used, they increase the carryover amount. 

And I pointed out that Fed Info Wks has an explicit checkbox that says (from memory) "File form 1116 even if not needed". I have checked it, but it is completely ignored or sometimes overridden when I go through the interview again.

This seems to be a bug by any fair definition.

I do want this Schedule B on file with the IRS (for the reasons you mentioned) and I have also come to the conclusion that the only option is to mail the return. Which is a hack. The actual return won't print 1116 and Schedule B, I have to find a workaround to print them and include them with the rest.

[hutchman]

Did you get anywhere with this? I am having the same issue. I NEED form 1116. Ridiculous. I am using web so I think it's even worse. I don't have a form view. I think I will switch to better software in the future. 

[martoro]

Nope. I had to paper mail the return.

It's amazing how much money this terrible software extracts. They'd rather invest in lobbyists preventing the government implementing a filing solution working for everyone. If I'm paper mailing the returns, it seems to me it should be pretty easy to create an agent that can create the forms for me. After all, the IRS publishes all the necessary information and it's a good example to train an agent on. One would need to spot check the forms, but I'm doing this with TT all the time anyways and discovering errors.

[hutchman]

yeah this is the last year i use this software. this link may be of information, but you have probably already seen it. 

> when the allowed foreign tax credit is $0, TurboTax may suppress Form 1116 and related worksheets

I want it filed so at least i have it for my records. instead

> Carryovers are still preserved in the TurboTax data file and will transfer to next year’s return, even if Form 1116 is not filed this year.

locked in TT ... uffff