Question

How do I carry back an excess foreign tax credit to the previous year? Is there a form/worksheet for this?

Forum|Forum|3 years ago
June 25, 2022
1 reply
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I cannot see how to apply an excess foreign tax credit to previous year. Do I have to first amend the prior year return?

TurboTax Self Employed Online

M

Mike9241

assuming, you did not make an election in the prior year to forgo filing form 1116. the FTC is carried back by filing an amended return. if you made the election the carryback is not allowed.

the carryback goes on line 10 on the 1116 for the same category of income as the carryback

if there is already a carryforward from that year the carryback will not benefit you.

also, be aware that generally the FTC is limited to the US tax multiplied by the ratio of foreign taxable income of that category to total taxable income

P

pk12_2

Employee

@danieljameswatso agreeing with @Mike9241 's great reply, may I just point out that something @Mike9241 said on the last line of his note ---- that you can avail of the foreign tax credit if, and only if , there was foreign income of that category -- this is implied by the ratiometric ( foreign income to world income, taxes thereof ) treatment of the available credit. It may not be obvious till you compute the allowable credit for the year.