Question

Turbo Tax doesn't recognize foreign taxes I entered, won't let me file Form 1116 for the Foreign Tax Credit Carryover

Forum|Forum|5 years ago
May 12, 2021
1 reply
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I paid foreign taxes on dividend income, as listed in Box 7 of my 1099-DIVs. I've entered this info in the income section. But when I go to the Deductions/Credits section and try to go through the Foreign Taxes section, it asks if I have any other foreign income to enter, and when I say no, it says I simply don't qualify for the Foreign Tax Credit. When I click on the "Learn More" link, it gives me the following message: "Based on your answers to the previous questions, it doesn't look like you paid any foreign taxes. This means you aren't eligible for the Foreign Tax Credit this year." Somehow Turbo Tax isn't recognizing the foreign taxes I've entered, so it's not allowing me to go any further in the Foreign Taxes section. I have no tax liability this year, so I can't take advantage of the foreign tax credit and want to carry over the foreign tax credit to next year. How do I get Turbo Tax to generate a Form 1116 when there are no prompts to take me to the Foreign Tax Credit Carryover screen?

I'm using the IRS Free File Program online, which does support Form 1116 (according to Intuit's website).

TurboTax Free Edition Online

R

rogge1722

Employee

This is easily done on the desktop version, but from the on-line version help is the following:

"To keep the unused portion to use another year, you can complete IRS Form 1116 and include a detailed worksheet to document your carryover (we'll help you do this)."

How they help you do this, I have no idea.

D

DeathAndTaxesForeverAuthor

Unfortunately, when I called the Turbo Tax support line, the agent tried to put my tax file in the TurboTax desktop version, and it still wouldn't generate a Form 1116. I'm hoping someone else has figured out a way to work around this error in the program.

SusanY1

If you haven't yet tried this, I would delete the 1099-DIV that contains the foreign tax entry, and enter it in again. Once in a while the program just doesn't "see" something, and this solution fixes it when nothing else does.

To help increase the chances this will work for you, I would suggest clearing your browser cache and cookies and closing your browser after deleting the form. Then try opening the program again and re-entering the data. Alternately, you can try launching TurboTax in a different browser or an "Incognito" window after the form is deleted if you prefer to leave your cache and cookies alone.

In Chrome you can get an incognito window with the keyboard shortcut Ctrl+Shift+N.

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