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How do you enter a foreign tax credit carryback in lacerte?

ellenabel
Level 3
I am amending a 2021 tax return to include a foreign tax credit carryback from 2022 to 2021.  Where in lacerte can I enter a foreign tax credit carryback so that it is included on the 2021 amended Form 1116 Part III line 10?
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11 Comments 11
dkh
Level 15

Look for the Carryover section on the Foreign Tax Credit Computation Worksheet 

I got there by the clicking the  Source Line icon from Form1116 part III line 10

 

Edit:   sorry I use Proseries not Lacerte- program options not the same   

and I had tired eyes -  carryback/carryover....not the same     I focused on the Part III, line 10

listen to @itonewbie          

Happy day everyone.

itonewbie
Level 15

The carryback is supposed to show up on Sch B (F.1116), Line 2a, except there is no input for that line item at all.  In fact, Intuit seems to have omitted input for Lines 2a to 2g altogether!

In the past, we have overriden the carryover amount from the most recent year and attached a statement to reconcile the difference.  You can't do that anymore with Sch B (F.1116) because Line 1 on the CY return is supposed to match the PY's Line 8.  A mismatch may now trigger a notice, which renders the software not fit for purpose.

@IntuitGabi Could you please have the developers take a look at this for both Lacerte and ProConnect ASAP because the Sch B (F.1116) as it stands is incomplete and cannot be used to meet the most basic compliance requirements for carryback and §905(c) FTC redetermination?  Many thanks!

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itonewbie
Level 15

@itonewbie wrote:

In the past, we have overriden the carryover amount from the most recent year and attached a statement to reconcile the difference.  You can't do that anymore with Sch B (F.1116) because Line 1 on the CY return is supposed to match the PY's Line 8.  A mismatch may now trigger a notice, which renders the software not fit for purpose.


@ellenabel You know what?  If Sch B (F.1116) will remain a PDF attachment as in the previous year (which doesn't seem to have been programmed as an option for 2023 as in the previous 2 years) and these changes are not on Intuit's roadmap for this year, we may just override the system as before and manipulate the PDF offline for the correct presentation before attaching it.

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ellenabel
Level 3

Where os the source line icon?  Is there something in lacerte I am supposed to turn on?

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itonewbie
Level 15

@ellenabel @dkh uses ProSeries, which has a totally different UI than Lacerte/ProConnect.  Furthermore, the reference is made to Carryover, not Carryback.

ProSeries is generally less capable of handling international returns; I would doubt that it is more developed in this area when it is lacking in Lacerte/ProConnect.

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Still an AllStar
ellenabel
Level 3

thank you.  All of your information is very helpful.  I greatly appreciate it.  It is somewhat disappointing that I have to do so many manual time consuming fixes in lacerte.

itonewbie
Level 15

GoSystem Rs and ProSystem FX are the Rolls Royce of international returns but they also cost the most.

I was told UltraTax is also very capable but ATX, which costs about the same but handles international returns much better than Lacerte/ProConnect, would be my go-to if I am to leave Intuit.

It's a shame Intuit does only a half-baked job with international returns and not put in enough effort to make them fully functional.

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ellenabel
Level 3

Lacerte also does a half baked job with nonresident state returns.  I spend way to much time with manual adjustments to those.  If I was younger CPA just starting out I wouldn't use Lacerte I would go with Pro systems.  Its more expensive outright but once you start looking at the time you spend doing work arounds and manual corrections, some of which are just not billable to the client, you end up seeing that Pro systems is the better product.  Lacerte seems to have stopped allocating resources to keeping the program up to date and really functional some years ago.

TaxGuyBill
Level 15

@itonewbie wrote:

It's a shame Intuit does only a half-baked job with international returns and not put in enough effort to make them fully functional.


 

International returns are an extremely small percentage of potential TurboTax returns.  Therefore, there is zero effort put into International returns for ProSeries (which is largely based on the same programming as TurboTax), and only minimal effort for PTO or Lacerte.

 

itonewbie
Level 15

@itonewbie wrote:

The carryback is supposed to show up on Sch B (F.1116), Line 2a, except there is no input for that line item at all.  In fact, Intuit seems to have omitted input for Lines 2a to 2g altogether!

In the past, we have overriden the carryover amount from the most recent year and attached a statement to reconcile the difference.  You can't do that anymore with Sch B (F.1116) because Line 1 on the CY return is supposed to match the PY's Line 8.  A mismatch may now trigger a notice, which renders the software not fit for purpose.

@IntuitGabi Could you please have the developers take a look at this for both Lacerte and ProConnect ASAP because the Sch B (F.1116) as it stands is incomplete and cannot be used to meet the most basic compliance requirements for carryback and §905(c) FTC redetermination?  Many thanks!


@IntuitGabi You might have missed this a couple days ago.  Would be great if you could look into this and give us an update.  Thanks again!

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Still an AllStar
IntuitGabi
Moderator
Moderator

Thanks @itonewbie 

@ellenabel This question would be better suited for our technical support experts. If there is a need to report this to our development team for further review, our support staff will be able to start the process.

How to contact Lacerte for help 
How to challenge a calculation in Lacerte 

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