I am preparing a return in which there is no taxable income or tax for 2020.
There were some small foreign taxes paid on certain dividends which were reported by the brokers on the Forms 1099-DIV.
My program does not allow these amounts to be carried forward to 2021.
Is this correct which would result in losing the benefit of the credits?
I filled out the Foreign Tax Credit Computation Worksheet and at the bottom where it says Foreign Tax Credits Carryover to 2021, it reports the foreign taxes paid in the column titled UTILIZED and zero in the carryover column.
.At the top of Form 1116 it says Form Not Required To Be Filed.
Am I missing something here?
The foreign taxes are on Line 9 so that when I enter them on Line 10 it shows the total of the two on Line 11. It then shows this double effect on Line 14 which is described as 'the Total amount of foreign taxes available for credit.'
Something still seems amiss here.
I get a red error message saying i cannot do that for e-filing.
So I removed the Form 1116 and overrode the section of the Foreign Tax Credit Computation Worksheet that says Foreign Tax Credit Carryovers to 2021 by changing the amount in the UTILIZED column to zero on the 2021 line, It then moves the amount to the CARRYOVER column.
At the top of Form 1116 it says 'FORM NOT REQUIRED TO BE FILED. I'm not sure why this is.
Can you report this issue to the technicians at Intuit for more clarity?