The following diagnostic is generating:

 

 

Solution:

Taxpayer does not qualify for the election not to file Form 1116 becuase the foreign tax credit exceeds $300.

Solution:

If the Foreign tax credit exceeds $300 then the taxpayer does not qualify for the election not to file form 1116.

To remove the election and generate form 1116:

1. Go to Screen 35.1, Foreign Tax Credit (1116)

2. Click on Gen. Info/Elections

3. Remove the entry in, "Elect not to file Form 1116: 1= do not print election statement, 2= print election statement," code 57

If the diagnostic is still generating:

1. Go to Screen 46, Elections

2. Click on Misc. Elections

3. Uncheck the box, "Elect not to file Form 1116[904(j)]," code 7