Will FreeTaxUSA support Form 1116?
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
Best Answer
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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.
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Answers
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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.
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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
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Very good.
Yes, I will reach out to the customer support for access to the prepared form 1116.
Thank you, AshleyB and BrookeW.
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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?
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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.
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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.
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+100
There is should be a provision to enable addition of FTC for supporting 1116 .
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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.
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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.0 -
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
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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.0 -
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!0 -
Thanks for the support @coffeetax I'll pass this along to our Team!
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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.
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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.0 -
Is this available in the 2025 tax software? I need to file a 1116 Sch. B to track carryforwards of my foreign tax credits.
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Hello anverhr, Schedule B for form 1116 is not supported for 2025.0
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Do you know if Schedule B for Form 1116 is planned to be supported for tax year 2026?
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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.0 -
Any updates? +1 on the form :)
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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.0
