Schedules B and C (1116)

The new additional schedules for 1116 are so far only showing up in draft format. Schedule B is for reconciliation and C is for redeterminations. If needed, they are required for each separate basket. Sch. C obviously only needs to be filed in years there are redeterminations, but does Sch. B need to be filed each year to record excess credits as potential carryforward, or only in years when an amount is included on line 10 of 1116 and a carryback/carryforward is actioned? The instructions for B when there is "0" on line 10 and only excess credits are generated are a bit unclear on this.

https://www.irs.gov/pub/irs-dft/f1116sb--dft.pdf

https://www.irs.gov/pub/irs-dft/i1116sb--dft.pdf

https://www.irs.gov/pub/irs-dft/f1116sc--dft.pdf

The instructions for 1116 also now mention B and C, but again the need for yearly filing of B is somewhat unclear.

Without getting into the detail too much, in many ways, this look better than what existed previously (nothing!) - I always struggled with providing the detailed computations and to be honest, even using TaxAct felt it didn't handle it particularly well because there was no real guidance.

I suppose it will be the same form also for the AMT version of carry forward/carry back.

As I read it, yes, Sch. B will be needed for all applicable baskets of 1116AMT when required.

With the £ getting stronger against the $, more folks are going to find they need to file 1116AMT.

For the one year I did need to carry forward credits, I created my own chart using IRS guidelines. It was simpler than the new forms, and the IRS accepted it.

It seems as these forms are now live on the IRS website (as of 01/19/2022)

https://www.irs.gov/pub/irs-pdf/i1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf

It seems as these forms are now live on the IRS website (as of 01/19/2022)

https://www.irs.gov/pub/irs-pdf/i1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf

Thanks for updating this topic. I downloaded the final forms last weekend and have completed the Schedule B forms for 1116 and 1116AMT. It's fairly easy, but for paper filers, the worksheet does take some time going back to past years and recording excess credits for both 1116 and 1116AMT. Hopefully most commercial tax packages will do all this automatically if they have all the information for the last 11 years. I have a spreadsheet which records all the info for excess credits and it saved a lot of time. It just means another 4 pages to add to the ream of paper I send the IRS every year, plus I'll have to re-do the forms every year, thank you.

It's been mentioned on other sites that the IRS will not accept a commercial 1040 filing via the web which includes 1116 with the need for line 10 unless the Schedule B is attached.

For those with GILTI, you'll be happy to know the new 1116 forms are the result of your favorite friend, the Tax Cuts and Jobs Act ( p.l. 115-97).

https://omb.report/icr/202112-1545-011
 

Right now TaxAct have not updated their software for the new 1116 and schedules. Can't file yet and after a call to support, they don't know when the change will happen. I wonder if other companies out there are facing the same issue.

It's fairly easy, but for paper filers, the worksheet does take some time going back to past years and recording excess credits for both 1116 and 1116AMT. Hopefully most commercial tax packages will do all this automatically if they have all the information for the last 11 years.

Just chiming in here to say that TurboTax included a 1166 Sch B and a Foreign Tax Credit Carryover Statement for my tax return. I had filed with them previously so they were able to pull in FTC surpluses from previous years. I have my own spreadsheet also for record keeping, and the figures agreed.

TaxAct hadn't finalised the 1116 and schedules by the time I had filed. It actually made no difference to me as I paid no foreign tax in 2021 and the old credits from 2011 didn't help my tax position. Next time however, i'll need to enter all those numbers again!