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Solved

E-file rejected due to ForeignTaxesPaidOrAccruedDt on Form 1116

Forum|Forum|5 years ago
February 21, 2021
59 replies
0 views

My federal e-file that I did yesterday (2/20/21) was rejected this morning (2/21/21) with the following message: "We encountered an issue processing your e-filed return. Please review the "ForeignTaxesPaidOrAccruedDt" on Form "1116" in the section "ForeignTaxCreditSource"."

All of my foreign taxes are on mutual funds held in a Vanguard brokerage account, so my numbers/data are coming from the Vanguard 1099-DIV.

I have run through the Foreign Tax Credit flow again and can't find anything to change/correct; I am ending up with the exact same results as before. In particular the date paid section looks correct, with the "paid" box checked (rather than accrued) and a date of 12/31/2020.

The only thing I was slightly uncertain about is that yesterday when it did the final review it asked me for "Qual Div and LT Cap Gains" for the foreign tax credit worksheet (and said this had to be greater than $0). I entered the "QDI eligible foreign income" value from the "2020 Foreign Tax Paid" section of my 1099-DIV. I am not certain this correct but do not see what other value would be appropriate to enter here. However, I also don't see how this would be related to the error message above.

I am wondering if this is a bug in TurboTax, as I had a similar experience last year where it was rejected due to a bug on their end, and had to wait until they had fixed the issue in order for it to get accepted.

Has anyone else encountered this? Or can advise on how to resolve it?

TurboTax Premier Online

Best answer by hongcho

A locally installed TT does not let you change the 1116 ATM date field and e-file (only print). When using simplified vs non-simplified, the difference seen on the 1116 ATM form is the data in column A (which includes the date). And... at least with a locally installed TT, I attempted to e-file at least a dozen times before it finally went through (using incorrect data that I plan to amend when this is fixed).

Turbo tax is making huge engineering, support, and PR mistakes here. I told them in this thread and on the phone within days of the forms being available (February) that this is going to affect, potentially, every customer filing a 1116 form and that it needs to be escalated and fixed NOW. I guess I was brushed off as being dramatic. I guess it is time to leave an amazon review.

I tried it again today. TurboTax (Windows) had an update.

This time, when I tried to e-file, TurboTax itself is rejecting it saying

"We Won't Be Able to E-file Your Return

"It looks like you have a form or tax situation in your federal return that TurboTax doesn't support for e-filing. We do support it for filing by mail.

"Here are the details:

"You elected the simplified AMT Foreign Tax Credit limitation. Print the return and file by mail.

"Don't worry, even though you are unable to e-file your return, we'll still help you file your return by mail."

So, it seems TurboTax gave up (?) on the simplified AMT Foreign Tax Credit limitation.

I am really tempted to change this.

Show previous replies

Periwinkle65

Have you contacted Vanguard? They may be able to assist.

AlwaysOnTheRoad

There are two approaches for a temporary solution. The first is to use the "Non-Simplified" filing for AMT. The other, do not claim the AMT carryover which eliminates the 1116 AMT form. I have done the latter and will file an amended return when Turbotax fixes the problem... if ever. If they do not fix... an amended paper return will be filed.

Sad to see Turbotax taking so long to fix a problem that has been extensively reported.

KP96

Hi all -

I am encountered the same efile rejection and does seem to be a TT bug this year.

My salary is 100% foreign and been filing Form 1116 for last 10 years and efiling with TT with no issues.

So surprised to see this issue.

I have reviewed with TT CPA and asked for further escalation. On the TT community there is quite a bit of cases right now with over 2000 replies.

Hopefully it gets resolved soon before efile deadline.

KP96

Hi all -

Some further information on side for this issue. My issue is consistent with many below.

100% foreign salary, filing Form 1116 for foreign taxes paid, and getting an efile reject.

First time in 10 years having this issue and have reviewed everything in detail with a TT CPA and form is in good order. Re-submitted multiple times and same error.

I also called the IRS and the confirmed they are NOT getting an efile transmission from TurboTax.

Then called a TT representative and they did confirm that its internal TT issue and efile submissions are not being sent to IRS.

Hopefully this gets resolved soon before efile deadline in April.

hilmarlehnert

Just re-iterating what worked for me

Wipe out Form 1166, i.e. delete all forms 1166 and 1166AMT manually from return
Go to interview: select simplified AMT method
Manually change the date on Form 1166 part 2 column 1, and Form 1166 AMT, part 2, column 1 to 12/30/2020
Submit

So it's possible to get a return through with the simplified AMT method.

I don't know why this worked: It's entirely possible that the date change from 12/31/2020 to 12/30/2020 is a red herring. There may be a random factor to this, so you may have to just try once a day and see what happens.

grsing

Thanks for posting - sadly, just tried this step by step and it got auto-rejected again 5 minutes after submission 😞

Definitely still a problem.

MariaSchmu

3/16/21 just another reject due to 1116. All foreign income from Vanguard Mutual Funds. Same as many previous years. No error marked by TurboTax or found going through all the entries, again.

Mtnbyke

I am experiencing the same e-file rejection. I would like to talk to someone at TT, but I cannot seem to find a way to contact them.

15otto41

It has happened to me several times, in spite of the reviews saying everything is fine. The problem could be a calculation on Form 1116 Part III line 18. This line should be populated by TurboTax with the same amount shown on Form 1040 line 15.

In my case this does not happen. The two amounts are not the same. I called Turbo Tax twice. In both cases the line fell as I was just finishing explaining the issue.

Riley51

I see that I have that problem too; line 15 on my 1040 is not the number that TT put into line 18 of Part III on the 1116, which asks for the number from line 15. Hmmmmm.

Josh2021

My return has same issue, I tried many times and all are failed. Today I tried to over-ride Form 1116 line 18 to match with line 15 on Form 1040, it allows me to do it, but with over-ride on, Turbotax software does not allow me to e-file it.

Very frustrating...

mariabeth58

I have same problem. Turbotax, please fix this asap!!! Losing patience.

SBtaxquestions

I am having the same issue, with multiple submission rejections.

I tried going from the simplified AMT calculation to non-simplified. (I really should be using simplified since that's the method I've used in the past.) While this change does in fact add country names to Part I of the 1116AMT forms, it also changes the numbers that come out of the forms. For both my COPY1 (general income) and COPY2 (passive income) percentages in line Part III line 19 change. And in the case of COPY1 (general income) the amount of AMT foreign tax credit utilized also changes (increases a bit). Consequently the amount of AMT foreign tax credit carried forward and available for future years also changes (decreases a bit).

This, as you can imagine, makes me nervous. It's not just a change in name (from simplified to non-simplified method), it's also a change in calculations and outcomes. Given that it's very clear that the simplified method should be used I'd rather not switch to the non-simplified method just to get my e-filing through.

Come on, TurboTax, get this issue fixed please so that all of us (esp. expats) can e-file without sacrificing correctness of our returns! Thanks!

steve200

I have the ForeignTaxesPaidOrAccruedDt problem.

I tried to switch to the non-simple method.

1. It's a pain to delete the old original forms because TT keeps generating them. I went through the Interview and switched to deduction, then switched to credit. That cleared them.

2. When using the non-simple approach, it did not automatically load the carryovers from prior years the way that the simple approach did. Since I had the pdf from the simple approach, it was simple to copy in the data (instead of going back to last year's form) and it was not necessary to override anything.

It fixed the missing date on the AMT form.

I haven't pulled the trigger to send it in yet but I will not file a paper form.

steve200

I have the ForeignTaxesPaidOrAccruedDt problem that I didn't have last year.

Last year I did 3 returns.

My return with Foreign Taxes and AMT went through fine.

My parents' return didn't go through and I filed the paper form. That was a nightmare because the pandemic delayed processing by about 6 months.

My friend's return also didn't go through and I redid it in HRBlock with no problem.

I really like TT so I'm trying to stay with it. It is frustrating that there is no customer accessible bug system and no commitment to when or if this problem will be fixed.

I have completed my form this year in HRBlock. It's not perfect. It has no way to put in the country as "Various" and I have too many countries to fill in a column for all of them. I would have to pick a single country or use RIC but it's not correct.

So I can file an invalid form with TT or HRBlock and if it gets audited I can update the Foreign Tax pages with no tax differences. I'm not sure which one is more likely to get flagged.

JMac11

Turbotax definitely has a problem with it's Form 1116, Foreign Tax Credit. If you fill out your form exactly as you did in 2019, it will be rejected. After three failed attempts and reading all of the responses, here is how I was able to get my return accepted.

1. Qualified dividends and long term capital gains. When my return was first rejected, I followed Turbotax recommendation and went to deductions, foreign tax credit. To my surprise, there was an additional question, that was not originally asked by Turbotax...the amount of qualified and long term capital gains that were included in my Foreign Source income. I completed this and resubmitted. Again, rejected.

2. Date Dividends Paid. If you indicate that your dividends were paid at various times, your return will be rejected. Change this date to 12/31/2020, either in the dividend submission section or on the form itself. First try and return was accepted.

I should also note that my dividends do not come from a RIC (Registered Investment Company). I did see a lot of comments about this. I own the stock directly and thus complete the Other section in the input schedule and list the countries as Various.

Hope this helps. This is a very frustrating issue and it took several hours and all of your ideas to resolve. Not what I expected from Turbotax.