Question

Form 1116 (error?) - "Foreign Tax Credit Comps Wks: Paid/Accrued Boxes must be entered

Forum|Forum|5 years ago
March 28, 2021
2 replies
0 views

Hi,

I am filling out Turbo Tax exactly as a did last year. This year, I am getting an error in Smart Check that I have no idea how to fix, and thus I cannot file:

The error takes me to the1116 worksheet but I don't know how to fill it out and it was never a problem before.

My wife and I have over 10K in a foreign bank account. It earns no interest. That's it. We fill out an FBAR every year. I have checked off the boxes that say we have a foreign bank account and foreign assets.

Help!

L

linaj20201

The issue has been submitted and is currently under investigation. If you would like to receive an update for the progress, click on the following link to get notified:

Form 1116 reject error

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on Form 1116 along with your US tax return. The amount will show on Schedule 3 line 1 and line 20 on Form 1040.

J

jayhawkgirl107

I have not entered any foreign taxes paid but TT is thinking I did. Now what.

L

linaj20201

If the foreign tax does not apply to you, you can simply remove a Form 1116 from the program. Here are the steps:

In TurboTax online,

Sign into your account, select Pick up where you left off
From the left menu, select Tax Tools, click on the drop down arrow
Select Tools
Under Other helpful links, choose Delete a form
Select Delete next to Form 1116 and Continue with My Return

If you have paid taxes to both foreign and the US tax authorities, the IRS allows you to claim a foreign tax credit on Form 1116 along with your US tax return. If this does not apply to you, you do not need to file this form.

@jayhawkgirl107