Form 1116 delayed

Financial Planning Tax Strategies
1

The foreign tax credit Form 1116 2021 is still not released in TurboTax and TaxACT. Originally it was to have been released Feb 17, but now it has been pushed out to Feb 24. Returns can’t be efiled until form is available in the software.

The pdf version of the form has been available on the IRS site for some weeks now. I visually compared the 2021 form to the 2020 form and they look identical. Of course there could still be changes in the calculations and instructions for the form, which the software companies must be testing.

My requirements are fairly basic, just dividends from a few ADRs and a global ETF, which are all passive income. Usually the software pulls in everything it needs from the broker’s 1099, calculates the credit and fills in the carry forward worksheets. Just asks me to enter the foreign income. Hopefully, nothing much has changed that complicates the calculation for me.

Does anyone know what the changes are in foreign tax credit this year?

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The changes are in the information provided by third parties through reports such as 1065 Schedule K-1 or 1120-S Schedule K-1. If you aren’t requried to file Form 1116 then you should be able to file now. If you do need to file Form 1116, you’ll have to wait for the other forms to be finalized.

1 Like
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Thanks irasmilo.

Glad to know changes aren’t pertinent to me as I don’t have any K-1s.

I was hoping to have my taxes all done and waiting to be efiled, before I went on a month long overseas trip. But will now have to do it on my return.

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I also need the form in Turbo Tax and they updated the release date to 3/3

nag