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

[Rvc457]

Does TT anticipate 1116 to be allowed to e file in the near future?

[HJ66]

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.

[HJ66]

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? 

[JE66]

When is it now scheduled to be ready??

[GeorgeM777]

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:

1. Update TurboTax (visit our Support Site if you need help updating).
2. Please review your answers under the topic of Foreign Taxes in the Deduction & Credits Section under Estimates and Other Taxes Paid. Make any corrections if prompted.
3.  E-file your return (you won't be charged any additional fees).

Note: The calculation change may affect your refund.

@Rvc457

@HJ66

@JE66

[stephanier2022]

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!

[JulieS]

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:

1. From inside the return, scroll down to Tax Tools on the bottom of the left side menu.
2. Select Tools.
3. Click on Delete a form (third on the list at the bottom of the screen).
4. Find Form 1116 on the list of forms.
5. Click Delete to the right.
6. Confirm your Delete.
7. Click Continue in the lower right. 
8. Click Continue with my return.

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. 

[HJ66]

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.

[gobarbweb]

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!

[DaveF1006]

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.

@gobarbweb

[Bustrer_Sonoma]

Website states Form is available in BOTH e-file and paper.. But it is NOT available in Turbotax ( the software application )... When will the software get an update to include Foreign Tax Credit Form 1116 ???

[Bustrer_Sonoma]

The website cites that the form is available in b oth e-file and paper form..  but the Turbotax software does NOT have the form available.. when will Intuit issue an update to the current Turbotax ???

IU would love to file my taxes using Turbotax but if Turbotax will not update their software, I will have to go elsewhere..

[RalphH1]

The Foreign Tax Credit part of the TurboTax program should be running smoothly, and has been available for a while now. (So you definitely don’t have to switch to a lower-quality tax software just to include the 1116!) @Bustrer_Sonoma, let’s discuss what you’re doing and seeing in the program.

When you select “Federal Taxes,” then “Deductions & Credits” (and “I’ll choose what I work on”), then “Foreign Taxes” (in the “Estimates and Other Taxes Paid” section), you should find yourself looking at the usual questions which calculate the credit (and create the 1116 form). But what exactly are you seeing that makes it appear that the form isn’t ready?

If you post some more details here, hopefully I or someone else can help you get the 1116 going and file ASAP!

[Steve-R-]

Thank you for your post. The availability of From 1116 has perpetually been "hidden" by Turbotax. Turbotax needs to be upfront with disclosing when this form will be available and to also inform the user when in the foreign tax section that the form is not available.

[Steve-R-]

Turbotax is less than honest concerning the availability of Formm1116. I started do the foreign tax credit section and nothing happened. Evidently the form is still not available, Turbotax should advice the reader that the form is not yet available and provide an estimated date.