Form 1116 & Software

[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]

They all do it correctly and produce the 10-year carryforward report.

[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]

The cheapeat the better, 1116 etc are filed by many US residents, so where you live is immaterial.