Turbotax foreign tax bug

I think I may have stumbled on a bug in TurboTax Premium and don't know
how to correct for it.
During the Federal review I get an error:
"Sch K-1 Partnership Additional Info 1: Foreign Tax Code L line 3b is
linked to a copy of Form 1116 which has a different paid/accrued box
checked. Either change the copy of the Form 1116 link or select the
correct foreign taxes code on this K-1 Worksheet to match the
corresponding copy of the selected Form 1116"
Problem is that I have both paid and accrued foreign taxes:
I have a K-1 that has in box 16 L "foreign tax amount" paid.
A second K-1 has in box 16 M "foreign tax amount" accrued.
TurboTax seems to be confused and cannot handle having both paid and
also accrued foreign taxes in the same tax return.
In TurboTax (Estimates and other Taxes Pais \ Foreign Tax Credit)
TT asks if the foreign tax is paid or accrued **without specifying which
foreign tax. If I select "paid", TurboTax finds the above error for the
accrued foreign tax K-1. If I select "accrued" the error appears this
time for the other paid foreign tax K-1.
What should I do?
- have 2 versions of Form 1116? How within TT?
- where in the Form 1116 do I change what?
Thanks.
Reply to
Jeff
It's 3 years later, and I have stumbled onto ALMOST the same problem. The GOOD NEWS: Unlike you, I can have some K1's with 16 L entries (immediate paid foreign tax) and other K1's with 16 M entries (accrued paid foreign tax). Turbotax now handles this by generating two copies of Form 1116. The BAD NEWS: I have one K1 that has BOTH 16 L AND 16 M entries! Turbotax can only associate a single K1 with a single Form 1116. It cannot figure out how to split this. MY SOLUTION: I dropped the lesser of the two taxes/credits.
Reply to
Rick B

Site Timeline Threads

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.