Is anyone still having a problem with Form 1116 getting rejected? Saw a post that an update was supposed to correct the problem, but the return is still getting rejected as of 3-13-21. Form 1116 does not have any missing information or errors apparent on it.
I believe that there are multiple issues with Form 1116. Turbotax has had issues in the past and never seems to get it right. I hope someone from the development team is listening along with those who approve bonuses and do performance evaluations.
I was able to fix my problems by entering text in descriptions that should have been handled by the software. I had to double-click on the amount of foreign tax paid and income on which that tax was paid. It then provides a pop-up table which will be blank -- even though the data was provided from brokerage firms and even though I had to assign from each fund in the interview. I completed both tables, entering the mutual funds in descending order of amount each time. Not sure if that matters but other posts have suggested that it must be highest to lowest so I did that.
I then had to fill in a text description of my deductions.
Once I did this, the IRS accepted my return.
NOTE: I see other problems posted which are different (country, date) so your mileage may vary.
All of this should be automated. I have had similar problems with Turbotax in past years with Form 1116. I don't know who is doing the QA on Form 1116, but they should pay me a bonus for pointing a problem that they should have found and fixed by now. And work to fix this and the other problems with this form.
I hope this helps someone and that Turbotax cleans up this mess for 2021 tax year.
There are multiple problems with Form 1116 in Turbotax. The error message you get in the email from Turbotax announcing the rejection provides clues.
My error was:
Return/ReturnData/IRS1116/ForeignTaxCreditSource - Data in the return is missing or invalid. Please double check your entries.
I found nothing on this error but you might try Googling your specific error message as circumstances may be different and you may get clues here or elsewhere. I have seen instructions for other errors like date and country errors that might work for you but there are other possibilities.
I really hope that Turbotax does a full QA review of this form. The problems with it have happened in prior years and it is ridiculous that information provided by brokerage firms and then triaged in the interview are not populated as needed and no clues are provided on steps to fix.