Lump Sum Distributions Worksheet Complains About My Form 4972, but I don't qualify for it

Forum|Forum|3 years ago
March 19, 2023
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In TurboTax Deluxe for 2022, on Form 1116, the Lump Sum Distributions Smart Worksheet is throwing an error saying that "Line B should not be larger than lines 6 and 12 on Form 4972." But, there is no Form 4972 in my TurboTax forms and the IRS says that I don't qualify to use that form because my Canadian RRSP one-time lump sum distribution (entered as such) didn't originate with me or anyone else born before 1936 (I was born many years later). So, TurboTax won't pass its internal checks and I don't know how to fix or bypass this problem within TurboTax! Any ideas?

ThomasM125

Line B on Form 1116 Foreign Tax Credit is where you report lump sum distributions from foreign sources. It sounds like you are not reporting that, so you can try entering $0 for that line item and that may resolve your issue. If you can't enter the amount in the screen where you see the error, you will have to work through the Foreign taxes section of TurboTax, which is in the section called Estimates and Other Taxes Paid, in the federal Deductions and Credits section.

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BMervAuthor

I carefully examined the Estimates and Other Taxes Paid section, but I couldn't find any option for Foreign taxes paid. That section lists entries for estimates, extensions and refunds for all of federal, state and local, but no foreign. And, if I select Withholding Not Already Entered, again I must pick federal, some state or locality - there's no foreign option I can find. Can you please explain which option to pick?