Turbotax won't let me e-file because it says that I need Form 1116, Schedule B "which will be available in a future product update."

[dixon-s]

But when I looked at that form on the IRS website, it seems that it's for carryover from previous years, so I shouldn't need it until 2022 taxes. Is there any way around this problem that seems like a bug?

[MarilynG1]

Yes, if you had a Foreign Tax Credit Carryover from 2020, you will need the Form 1116, Schedule B.

If you did not have a carryover from 2020, you should be able to Efile. 

Since you're using TurboTax Online, try closing the program, clear your Cache and Cookies and review again. 

Check your Foreign Tax Credit Computation Worksheet to see if you have a carryover amount shown (down towards the bottom of the worksheet). 

In TurboTax Online, you will need to pay for your return and review the PDF copy (be sure to specify 'all forms and worksheets'). 

[dixon-s]

Thank you for your reply @MarilynG1 

I am indeed using Turboxtax Online. I don't have a carryover from 2020 and the 1116 Foreign Tax Credit Computation Worksheet (which I can't find to open in full but can scroll in the "review" pane) shows a carryover from 2021 to 2022, so I should be able to e-file.

However even after signing out of Turbotax, clearing the cache and cookies, closing and reopening my browser, and enabling popups, I am still getting the message that I need Form 1116, Schedule B and therefore cannot e-file.

Any other ideas?

[DaveF1006]

Yes, 1116 Schedule B is not available until 03/31. After it is available, the form is not supported to be efiled as stated in the following link.

@dixon-s

[dixon-s]

@DaveF1006Thank you for your reply.

I shouldn't need to file Schedule B until next year because I don't have a carryover from 2020. Yet Turbotax Online won't let me e-file this year because it says that I need Schedule B now. This seems like a bug and I'm looking for a workaround. Does anyone have suggestions?

[AliciaP1 · Accepted solution]

You will also need Schedule B if you will have a carryover for the current year.  

Per IRS Instructions for Form 1116:

New Schedule B (Form 1116), Foreign Tax Carryover Reconciliation Schedule. There is a new Schedule B (Form 1116) which is used to reconcile your prior-year foreign tax carryover with your current year foreign tax carryover. This new schedule replaces the previous attachment requirement for Part III, line 10. See Schedule B (Form 1116) and its instructions, and the instructions for line 10, later, for more information.

[dixon-s]

@AliciaP1Thank you for clarifying. I hadn't fully read the instructions for Form 1116, Schedule B.

If I had known that I needed to paper file anyway, I might have used different software or gone to an accountant directly.

[John_Rhodes]

Looks like (as of today 3/10), Form 1116 Schedule B will be available by 3/11 and will support E-filing.

Let's cross our fingers.

[jasonsoch]

1116 schedule B is now in my file list, but efile attempt failed. Says "unable to locate the attachment Foorm1116ScheduleB.pdf. Please go back and reattach it." The bugs continue!

[Berkonomics]

I had the same problem.  It comes from a carryforward of foreign tax credits from your past brokerage 1099 statement(s) in the foreign tax paid box.  TurboTax should have allowed you to deduct the amount from your tax due.  The TT software does this for the current year's 1099 but for some reason did not do this for some years in the past (in my case 2018). Usually this is a small amount and you can easily forget it.  Go to "forms" and scroll down to "1116 comp wks."  If the numbers are small enough in line 10 and below that in the carryover chart, zero them out by deleting them so that the total carryover to 2022 and AMT carryover to 2022 (both at the bottom of the worksheet) are blank, this will solve the problem and you can file your return.

[EbonyA]

Are you using the desktop product? If so, our TurboTax Development Team has been working non-stop to support e-file for IRS Form 1116 Sch B. We’re happy to share that the functionality is currently available in our Online Product. Desktop functionality should be ready by Saturday 3/12/22. Look out for a new engine update and you should be able to e-file @jasonsoch.

[dixon-s]

@BerkonomicsThank you for your feedback.

I do not have a carryover from a previous year but am simply trying to carry forward foreign tax paid in 2021.  I don't have any foreign 1099 statements.

[dixon-s]

@jasonsochHave you had success in attaching Schedule B to e-file yet? I hope that it works soon!

[Berkonomics]

Dixon, you have a carryforward from last year, meaning that you could not use the credit then to reduce taxes.  Yes, you do need 1116.   I understand that TT development group is working on this quickly and should have a fix within days.  Good luck.

[Cass0317]

Our TurboTax Development Team has been working non-stop to support e-file for IRS Form 1116 Sch B. We’re happy to share that the functionality is currently available in our Online Product. Desktop functionality should also be ready today Saturday 3/12/22. Look out for a new engine update and you should be able to e-file!