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March 30, 2025

To fix the issue in TurboTax where it incorrectly says you have a Foreign Tax Credit (Form 1116), follow these steps:

Open Your Return: Start by opening your tax return in TurboTax.

Find the Foreign Tax Credit Section:

  • TurboTax Online/Mobile: Use the search box  (magnifying glass at top right of screen) type "foreign tax credit" and click the "Jump to" link.
  • TurboTax Desktop: Search for "foreign tax credit" and select the "Jump to" link.

Review and Edit Entries: Check the entries in the foreign tax credit section. Remove or correct any foreign taxes that were entered by mistake.

Remove Form 1116:

  • TurboTax Desktop: Go to "Forms" mode, find Form 1116, and delete it.
  • TurboTax Online: Go to "Tax Tools," select "Tools," then "Delete a Form," and remove Form 1116.