question on foreign tax credit carry over

Forum|Forum|1 year ago
July 10, 2024
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Am seeing AMT foreign tax credit carryovers on form 1116, but zero foreign tax credit carryover to 2023.

Does this mean i have no foreign tax credit carryovers to next year ?

However on Schedule B of form 1116 i see a foreign tax credit carryover to 2023.

Am a bit confused. What does this mean Can someone help clarify ?

Best answer by Mike9241

look at your 2022 form 1116 line 14 which includes any prior carryovers if Turbotax didn't mess up on c/o

line 23 is the amount used.

note the following. FTC can be carried over 10 years. Current year FTC is used before carryovers so it's not uncommon for c/o to expire. because of the way FTC is computed for regular tax and AMT tax it's possible to have an AMT c/o but no regular tax c/o

Mike9241Answer

look at your 2022 form 1116 line 14 which includes any prior carryovers if Turbotax didn't mess up on c/o

line 23 is the amount used.

RK0501Author

Thanks !

Am filing for my now deceased parent who sold a house overseas in 2022. He had no other income save the capital gains on the house sale. Taxes were paid @ 24 % of taxable income in the foreign country and i was under the assumption that would cover Federal taxes and NIIT taxes. To my surprise almost 50% of the foreign tax paid ended up as Foreign Tax Credit, requiring me to pay a sizable amount of tax (about 30K) in 2022. About 50% of the foreign tax was carried over to 2023 as credit.

Can i file taxes on his behalf for a small left interest amount in 2023 and use the FTC carried over to 2023 (from 2022), to get a refund of the 30K tax amount i had to pay in 2022 ?

many thanks !