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Will FreeTaxUSA support Form 1116?

sttlom

Hello,

In recent years FreeTaxUSA was not able to attach Form 1116, the Foreign Tax Credit form, to my Federal Income Tax Return Form 1040. Namely, as per Form 1116 instructions, even though my foreign tax credit was related to interest from a CD in a foreign bank, since I do not receive a qualified payee statement from that bank, I have to include Form 1116 in my 1040.

Since FreeTaxUSA was not able to add 1116, in previous years I always had to manually do it through amended 1040-X Form.

Is there a chance that, for tax season 2024, FreeTaxUSA includes Form 1116 for cases like mine?

Thank you,

Slobo

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Accepted answers

AshleyB

Hi Slobo!

Form 1116 is able to be e-filed in many situations. In some situations, including Foreign Tax Credit with Carryover, the form is still prepared by the software but will need to be mailed instead of e-filed. In both situations, the 1116 form is able to be prepared automatically by the software without amending your return.

If you have questions as you're entering the details for this upcoming year, please feel free to reach out to our customer support from within your account and we can help provide information for your specific situation.

All comments

BrookeW

Hello!

The 2024 software only supports the foreign tax credit when the foreign income and taxes are reported on a K-1, Form 1099-INT or Form 1099-DIV. If you have paid foreign income taxes on income other than what is reported on one of those forms, our software will not be able to support your situation at this time.

sttlom

Thank you, BrookeW.

If there is a way to vote (or maybe send a suggestion message to someone) for Form 1116 be included in the 2024 FreeTaxUSA software, please let me know how.

Submitting the form manually after FreeTaxUSA electronic submission is very inconvenient.

Regards,

Slobo

AshleyB

Hi Slobo!

sttlom

Very good.

Yes, I will reach out to the customer support for access to the prepared form 1116.

Thank you, AshleyB and BrookeW.

Asdfg321

I was planning to purchase the Pro support version but I need to file 1116 schedule B. Am I correct in understanding there is no way for me to do this unless I use a different service? It would be good to call this out under the supported forms as I wasted a lot of time filling in the rest of the information just to find out I can't add the required 1116 schedule B. I'd even be happy to attach a manually completed form but this also does not seem possible?

LTC_B1

I find it very disappointing to learn that I can not use FreeTaxUSA to produce a Schedule B for Form 1116, to file electronically. Apparently, I must fill this Schedule out manually, and send it, and the rest of the return, snail mail into the IRS.

I THOUGHT I had thoroughly researched the capabilities of FreeTaxUSA and had learned it was VERY CAPABLE of meeting the most complex tax requirements. Who would have known that Schedule B, Form 1116 would be a hiccup?

I must ask, is there a simple way to resolve this so I can send in my Schedule B, Form 1116, with all of my other forms, at once, electronically?

Many thanks for your help.

UnusualTaxQs

Please add another vote for supporting 1116 Sch B. I had to snail mailed it for 2023 and was hoping they fixed this for 2024 —- apparently not.

m4.nikanta827

+100

There is should be a provision to enable addition of FTC for supporting 1116 .

Frustrated396

Please add this ability for the next tax year. Many of us file form 1116 with carryover because we live overseas, yet we're now required to snailmail our return which is difficult from overseas.

CoryF

Thank you for this request,

We definitely work to improve our software to meet the needs of our customers. We have received this request from multiple sources, and we appreciate your requests on this thread.

JohnnyJonhny

OMG, I just found out that now. I need 1116 where taxes where withheld from Stock sources abroad). This is a must guys. I dont want to have to go back to TurboTax for this

MatthewD

Hi JohnnyJonhny,

Although we support form 1116, it is limited to income reported on a 1099-INT, 1099-DIV or K-1. We do not support foreign tax paid on a stock sale source, like a 1099-B.

coffeetax

I echo the request for 1116 carryover support!
I've otherwise been pretty happy with FreeTaxUSA, keep up the good work and please include this 1116 carryover feature ASAP. Thank you!

RyanV

Thanks for the support @coffeetax I'll pass this along to our Team!

SCBun

I noticed that Form 1116 line 3e (“Gross income from all sources”) appears to be calculated automatically by FreeTaxUSA, but I cannot find any supporting worksheet showing how this value is derived.

Based on the IRS instructions for Form 1116, it seems that qualified dividends and long-term capital gains may need to be adjusted using the capital gain adjustment worksheet for the foreign tax credit limitation. However, this worksheet does not appear in the PDF copy of my return.

Does FreeTaxUSA generate an internal worksheet for this calculation? If so, is there any way for users to view it in the full return or supporting forms?

I would like to better understand how the line 3e amount is calculated.

TaxMorgan

Hello SCBun,

Since we are not able to view your account information here in the community, we cannot comment on how the software is calculating a certain line of your return. I would recommend reaching out to our team from the Support Center of your account, and they will be able to help you determine where that amount is coming from and how you can view the pertinent worksheets if available.

anverhr

Is this available in the 2025 tax software? I need to file a 1116 Sch. B to track carryforwards of my foreign tax credits.

kiarab

Hello anverhr, Schedule B for form 1116 is not supported for 2025.

SCBun

https://community.freetaxusa.com/discussion/comment/7529#Comment_7529

Do you know if Schedule B for Form 1116 is planned to be supported for tax year 2026?

kiarab

Hello SCBun,

At the moment, we do not know. I would recommend that you ask come this November as that is when we usually release the next year's returns on the software. We would know for sure by then what new forms we will support.

Pawel

Any updates? +1 on the form :)

kiarab

Hello Pawel,

I'd recommend asking again in a few months. At this point in time, we do not know what forms will be prioritized and ready for the upcoming tax year.

Ammu

Please add me in the request list as well. Only for Form 1116, I have to upgrade to premium with turbotax or other tax platforms. Everything else is good here, just this one needs to be included.

For me it's not even the carryover issue, I am reporting the property taxes paid on my foreign property for which I receive rental income, but at the end I see foreign tax credit being calculated as $0. Why is the software not considering what I entered?

GeorgeM

Hello Ammu:

As you probably noticed in this thread regarding Form 1116, currently our software only supports Form 1116 in certain limited situations, specifically, when foreign taxes are reported on forms 1099-INT, 1099-DIV, or a K-1. Thus, even though you entered the foreign taxes you paid on your rental property, our software will continue to reflect your foreign tax credit as $0 given that such foreign tax falls outside of the types of income we do support in this area.

It’s helpful for us that you posted your question and concern in this thread as it allows us to better track customers requesting the type of additional support regarding Form 1116.

JLFTUFreeForum

Adding this form will only enhance your software.

Ammu

https://community.freetaxusa.com/discussion/comment/7760#Comment_7760

Thanks for replying, George.
I am declaring rentals in Schedule E.
and the property taxes I paid for that property but it is still taking in as $0.

One more question, last year my CPA filed my taxes and he wouldn’t respond for my questions reg. the details of the depreciation of the property this year.

While I entered all the details of the original sale, land cost etc., FreeTax USA is showing me some depreciation amount $xxxx.xx that I took last year it seems.
I am assuming it has access to my previous year tax data. Can I proceed with agreeing to the amount it is showing?

Thanks!

Taylor

Hello Ammu,

Thank you for your response. The $0 you are seeing is likely because the foreign income isn't reported on a 1099-INT, 1099-DIV, or a K-1 form.
The Depreciation Schedule is calculated based on your entries in the Depreciable Asset screens. We do recommend verifying your prior year depreciation taken on the asset with your prior year returns. This will ensure your entries match the depreciation schedule from prior years.

DougR

I would also like to add my vote for including the ability, in future FreeTaxUSA releases, to e-file a return that involves Foreign Tax Credit (FTC) carryovers and thus requires Form 1116 Schedule B.

I have a Vanguard International Stock Index fund in my portfolio, and it reports foreign tax paid on my 1099-B form. For the past 10+ years I've been e-filing with Turbo-Tax, including Form 1116 Schedule B, under this scenario.

I understand that currently, FreeTaxUSA supports the calculation of the Form 1116 Schedule B, and can print out that form, but that you cannot e-file the return containing the Form 1116 Schedule B. Instead, you must print out the entire return and submit it by mail. Is that correct?

UnusualTaxQs

https://community.freetaxusa.com/discussion/comment/8012#Comment_8012

Yup! I'm exactly in the same position as you (same Fund even) and went through the whole process and had to mailed it in. Since then I went to TT but I will switch as soon as FreeTaxUSA supports this.

DougR

Just to followup on my last post, with a clarification on what I said in the last paragraph. I got a response from a FreeTaxUSA support person, who told me that FreeTaxUSA does NOT do the Form 1116 Schedule B computations, and that the Schedule B CANNOT be printed out by FreeTaxUSA. You must do those computations yourself, and fill them out on a Form 1116 Schedule B you download from the IRS website.

I too have decided to use TurboTax online for this tax year (2025), since they support e-filing of Form 1116 Schedule B. I would/will switch to FreeTaxUSA if/when they support e-fileing of Form 1116 Schedule B.

Doug