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Error: Form 1116 is not required

This error occurs when the return includes Form 1116 but line 8 shows no foreign taxes paid or accrued and line 10 shows no foreign tax credit carryovers from prior years.

Error message

Form 1116: This return includes a Form 1116, but Form 1116 is not required because no foreign taxes paid or accrued are reported on line 8 and no foreign tax credit carryovers from prior years are reported on line 10. To inactivate Form 1116, go to Organizer / Foreign Tax Information / Foreign Tax Credit / Foreign Tax Credit Options and select the Claim the credit without filing Form 1116 (Automatic) checkbox. If this box is checked the form will not be e-filed or printed.

Solution

  1. Go to
    Organizer
    Foreign Information
    Foreign Tax Credit
    Foreign Tax Credit Options
    Compute Options
    .
  2. Mark the
    Claim the credit without filing Form 1116 (Automatic)
    checkbox.
  3. Do a full recompute, then recreate the e-file.
  4. If Form 1116 still appears, go to
    Organizer
    E-file
    Additional Information
    Forms Included in Tax Return
    .
  5. Verify that Form 1116 is not marked.
note
When you mark the
Claim the credit without filing Form 1116 (Automatic)
checkbox, Form 1116 and related statements won’t appear in the e-filed return or print-preview.

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