Foreign Tax Credit TT error: How to fix it?

[yomero1]

I believe I entered appropriately each "easy step" to obtain the Foreign Tax credit: listing the foreign taxes paid when entering the 1099-DIV for the mutual fund (box 7), selecting the appropriate options to be exempt from Form 1116 (no more foreign taxes to enter other than those entered on 1099-DIV; and no carryovers), and finally selecting the option to take a credit. The program then appropriately tallies the tax credit without Form 1116 since the amount is less than <600.

However, when doing a “Smart Check” the following error is reported: “Check this Entry Schedule B --Form 1099-DIV (Mutual Fund XXX): Foreign tax Sch A box or Form 1116 copy should be entered. Return to the place where this was entered to correct the entry.” It also provides a checkbox to click for “Foreign tax Sch A box” to correct the error. Needless to say, if I click on the provided box the credit is converted to a deduction.

I suspect this is an error in this year’s TT program, and do not know how to eliminate the error to continue filing without losing the tax credit. Any help would be much appreciated.

[rogge1722 · Accepted solution]

Try the following work around.  It has worked for others.

Bring up the 1099-DIV and  in Box 7, double click on that f1116 icon. Another box will appear.  You will see the phrase "Form 1116 (COPY 1)”. Click on that and it will be highlighted. Then click on the "Link" button. That box will disappear and you should see the phrase "COPY 1" inside the f1116 icon in the 1099-DIV, box 7.

Then recheck line 48 of the 1040 to make sure you still have the credit. If so, that should remove the error.

[jeffecohen]

Thanks. I'll try this out, but will it add form 1116 to the return? The amt of foreign tax being reported is under the $600 minimum required to file it in a joint return. I suppose it can't hurt, but why give the IRS any more data than necessary?

[rogge1722]

F1116 should not be generated. If you go to the Print Center and look at the official forms for filing, f1116 should not be present or if you have the desktop version, in Forms Mode, in the left pane, f1116 should not be present.

[jeffecohen]

That worked! It shows up on Line 48 of Schedule 3, which transfers to Line 12b of 1040. Thanks!

[yomero1]

As in 2017, you hit the nail on the head by providing a great solution to the TT error:

Going directly to Form 1099-DIV Worksheet
Double clicking in box 7 b and
Selecting to open "Copy of Form 1116"
will result in the phrase "COPY 1" inside box 7b.

This in turn will provide the appropriate tax credit in Form 1040  line 48 without requiring Form 1116 (if amount <600 in a join return).

Now I just have to wait for form 8960 to be available before filing.

rogge1722: You are a legendary Superuser and our TT Foreign Tax Credit "Guru"!
Many, many thanks!

I  look forward to your expertise next year.

[dan-heumann]

I'm using the web-based premier version (if that matters), and unfortunately double clicking on 7b does nothing.  Thank you for the info anyway though, will see if TT updates this.

[abs004]

I have the same error using web-based premier version, please provide a fix!

[keh]

Same problem using web-based. I have the Foreign Tax Paid credited on 1040 OK and everything, it just won't pass the final review. Error review insists that I should check the box for deducting on Sch A, which isn't what I want (of course). It's a bug.

[bishop1909]

Thank you!  This solved my foreign tax error for the CD based version!  Sure wish TurboTax would fix this bug.

[jfitz9999]

Same problem---I have the same error using web-based premier version, please provide a fix!

[rudplatt]

Same problem. Help!

[rogge1722]

See the update below for the workaround.

[jsdrummer1]

Thank you. I had this exact same problem and this workaround worked for me as well. TurboTax really needs to fix this bug.

[bob-marsilio]

Me Too!!!