Form 1116 & Software

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kev_indigo
Posts: 10
Joined: Fri Apr 17, 2015 4:18 pm
Location: Canada

Form 1116 & Software

Post by kev_indigo »

Nelsona, back in March you wrote:

Re: Unused Foreign Tax Paid Form 1116 Line 10
by nelsona » Sun Mar 24, 2019 11:06 am
You are supposed to produce a statement each year. Your software does it, and it is sent with your return, even electronically .
I never recommend doing 1116 without software. f you are having to produce a 1116, why not do a correct one.

Question: which software and version can be trusted to do Form 1116 correctly?

I have always done my Form 1116's by hand for 15+ years - and probably have never done one correctly yet. It's the one part of my US return that gives me the most trouble - the rest is easy, except for Form 1116. I get hung up on the part on how to report and treat capital losses. I read the Form instructions every year and my eyes glaze over.

My fear of software is that I cannot tell if the software is doing it correctly if I don't know how to do it myself by hand. Somehow, I don't think the IRS accepts the excuse "the software did it" when it is wrong.

Thanks!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Form 1116 & Software

Post by nelsona »

They all do it correctly and produce the 10-year carryforward report.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
kev_indigo
Posts: 10
Joined: Fri Apr 17, 2015 4:18 pm
Location: Canada

Re: Form 1116 & Software

Post by kev_indigo »

I was asking more for what version should be used, or if there are software brands that are better for foreign returns. I was reading on the Turbo Tax site that even the cheapest Basic version will do all the forms including 1116, but with less built in interview assistance and help. I was thinking I had to buy the Deluxe version which runs $120, and I am having a hard time justifying that cost when I can do it myself for free.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Form 1116 & Software

Post by nelsona »

The cheapeat the better, 1116 etc are filed by many US residents, so where you live is immaterial.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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