Can I take unused Foreign Tax Credit and apply to current year even if there was no foreign income this year?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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My questions is regarding Foreign Tax Credit. Last year I divorced my wife. She worked overseas and we were not able to use-up all the tax credits. Currently there are $16K which I read we can split 50/50. Anyway, How and where in my Form 1116 and/or 1040 can I use my credit. My income is all from US and currently have to pay $4K per TurboTax. Can you assist?"

TurboTax Home & Biz Windows

A

Anita01

Employee

You cannot use a carryover foreign tax credit without foreign income in the current year.

K

kristinlmckee

Employee

Can you explain why that is the case? If not, what is the point of a foreign tax carryforward? I can't think of any situation when you would use it because you would always use the credit in the year you earned the foreign income.