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PDF ATTACHMENT Form 1116 Schedule B must be attached to the return, when Form 1116, Part III, Line 10 (Foreign Tax Credit Carryback or Carryover) is not zero. The fiduciary income tax return I am working on does not have any prior year carryovers. The Foreign Tax Credit is passed through to the beneficiary on Schedule K-1. This critical diagnostic appears to be erroneous.
Solution: Form 1116, Schedule B is not yet implemented in the e-file. Please print the 1116 Schedule B directly to a PDF, save it somewhere on your computer and attach the PDF to the e-file by using screen 2.2, e-file Misc.
If the credit is being passed through to the beneficiary, please check for any carryover figures that may have been transferred from the previous year in screen 36, Foreign Tax Credit (1116). If the credit is not being claimed by the trust/estate you can remove these figures and the diagnostic will go away.
