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.
I agree that Turbotax claims that it is not available. But the IRS disagrees.
Yes. According to this Turbo Tax link, the 1116 form will be available 2/24.
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?
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.
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?
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.
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...
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?
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.
@HJ66
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.
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.
[Edited 03/04/22 | 10:18 PST]
important typo corrected
Form 1116 Schedule B is unsupported for e-filing according to the forms schedule. This runs counter to your most recent post. Explanation?
Does TT anticipate 1116 to be allowed to e file in the near future?
I have very carefully reviewed my inputs to step-by-step questions on Foreign Taxes as you have suggested. I can not find anything that shows a double entry. On Form 1116, page 2, line 14 shows that the amount available for a foreign tax credit is $54, which is correct. The foreign Tax credit shown on line 35 is $108. Where did this come from? For now, without any further information, I will over-ride the program input of $108 and enter $54.
On over-riding the error, my final check flags the error on form 1116, which I ignor. This results in print warnings. Any down side to printing with the error?
If your return has been rejected regarding Form 1116B, please know that the issue is being resolved in a product release scheduled for March 18, 2022. Your tax return now includes updated information to carryover of foreign taxes. On or after March 18 you'll need to sign into TurboTax, complete a quick review (steps below), and resubmit your return. Please note this is just for your federal 1040 tax return. To review and re-submit your return, follow these are the steps if you're using a CD or downloaded version of TurboTax:
Note: The calculation change may affect your refund.
My foreign tax credit is under $300, so I don't need to file Form 1116. Turbotax keeps flagging my return for errors and saying I need to enter info on Form 116. How do I get Turbotax to recognize that I DON'T NEED FORM 1116 and stop marking it as an error??? This is incredibly frustrating!
In some cases, Form 1116 is not required. If all of your foreign tax is reported on Form 1099-INT, 1099-DIV or Form K-1, and you have no exclusions or carry overs, you may not have to file Form 1116.
If you want to check this, you can delete Form 1116 from your return and see if you can e-file without it.
This is how to do that:
At this point you should be able to complete your e-file. If your Form 1116 repopulates, you have a carryover from 2020, or another situation that requires the form, and will need to wait to file.
I had a similar issue. After weeks of frustration, I went back to my 1099-DIV and deleted my Foreign Tax inputs. I also made sure that the foreign tax was no longer listed on the worksheet "Foreign Tax Credit Computation, Part II" and on " Form 1116, Part II".
Then, I went to the Topic List, Foreign Tax Update to re-enter the Foreign Tax on 1099-DIV. In box 7, DO NOT click on "deduct foreign tax on Schedule A" and DO Not click "Link a copy to Form 1116 and DO NOT select box A, B, or C.
That worked for me.
I have a small foreign tax paid amount on a 1099 Div. Somehow I cannot get Turbo Tax to take this amount. The instructions for form 1116 are confusing. Help!
Normally, single filers who paid $300 or less in foreign taxes, and married joint filers who paid $600 or less, can omit filing Form 1116. But using the form enables you to carry forward any unused credit balance to future tax years; without filing Form 1116, you give up this carryover tax break.
At this point, form 1116 may have generated because you were unable to receive the full amount of your foreign credit this year and having a Form 1116 will help you Carryover this amount to be used in future years.
If you wish to omit the carryover and if your foreign tax paid is within the prescribed amount I mentioned above, you can delete Form 1116. If online, go to tax tools>tools>delete a form>delete all forms and worksheets that reference Form 1116.
If using the software install, go to the forms mode and select Form 1116 plus all the forms and worksheets referencing Form 1116. Select each form and when it appears in the right pane of your program, delete form at the bottom of the page.