At the review stage of my fed tax return, and one option says "b DoubleClick to link to a copy of Form 1116", but the doubleclicking didn't work. Please help!

[elaine-dai]

The error message is "Schedule B -- Form 1099-DIV (SCOTTRADE INC): Foreign tax Sch A box or Form 1116 copy should be entered. Return to the place where this was entered to correct the entry".  One option i want is "DoubleClick to link to a copy of Form 1116".  But the doubleclicking didn't work - no response after I double clicked the text box, and I don't want  my foreign tax on Schedule A, as I'd like to take the credit straight.  Please help!

[rogge1722 · Accepted solution]

This is a software error and here is the workaround. If you are using the desktop version, use “A”; if using the on-line version, use  “B”

(A)
Bring up Form 1040 Wks. and make sure the credit is posted on line 48. If it is then bring up the
1099-DIV Worksheet.  In Box 7, double click on the 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 will see the phrase “COPY 1” inside the f1116 icon.

Then recheck Form 1040 Wks. and make sure the credit is still posted on line 48. If so, the error is cleared, no f1116 will be generated and you are done.

(B)
It is assumed you are using the exemption and the credit is posted on line 48 of the 1040 Wks.  Go to the Foreign Tax Credit interview.  We will be going into the interview just far enough so TT will Link to COPY 1 of a f1116 although no f1116 will actually be generated.  Here are the headers and the responses.

1. Foreign Tax Credit
             Continue
2. Tell Us About Your Foreign Taxes
             Check the “None of these apply.”
              Make sure the other 2 are blank.
               Continue
3. Foreign Taxes
                Continue
4. Do You Want the Deduction or the Credit?
               Take a Credit.
5. Reporting Foreign Taxes Paid
                 Continue
6. Where Did You Receive Dividend Income From?
                If already selected, Continue, otherwise select any one. It doesn’t matter as it is not needed.
7.  Income From Foreign Countries
              “Report Income.”
8. Report Foreign Tax Paid to XXXX.
             Check under “Select”.
             Continue.
9. Foreign Source Income
             If there is an entry, ignore it otherwise type in any arbitrary amount. It is only a filler and not needed.
              Continue.
10. Reporting Foreign Taxes Paid.
             At this point, TT should have inserted the Link and cleared the error without generating a f1116. We want to vacate the interview now, so I suggest selecting “Smart Check” to see if the error is cleared.  If so, verify the  credit is still on line 48 of the 1040 Wks. and you are done.                      

[elaine-dai]

Hi, thanks for your quick response!  What I did was that I cleared and re-did my tax on TurboTax online version, and the error message was gone then.  I followed your instruction above, but after interview questions 10, I had seen more questions than what you had listed, e.g., "Foreign Tax Credit Worksheet", "Choose the Income Type" etc.  I finished them all (left most of them blank).

[icskatingqn]

Thanks for reporting and following up! I couldn't change this form during review (besides checking to use Schedule A), and your fix to simply delete the 1099-DIV and re-submit it worked like a charm.

[crsimon53]

Thanks so much for posting this.  I had several of these software errors to work through and you really helped me out with this fix.  I have to wonder what is happening with TT?  I see that this issue was apparent in 2019.  Why has it not been fixed two years later?  The process of filling out the tax forms are already challenging enough without these software errors.  Form 1116 is especially a mess.  And fixes are needed for listing stock option purchase and sales - that form doesn't work at all. And it puts our returns at risk.  If the computer kicks it out due to the work around it could subject us to a review.  Disappointing. Thank you for making it a bit easier for me.  I hope others are able to find this simple fix to f1116.