Question

Foreign Tax credit carryover

Forum|Forum|6 years ago
April 1, 2020
1 reply
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During the interview, I completed the information on prior year Foreign Tax credit and AMT carryover with the following amounts.

Regular Tax Foreign Taxes: 30 and used 28 (which left a carryover of 2)

AMT Foreign Taxes: 30 and used 19 (which left a carryover of 11)

However, the carryover statement shows:

Regular Tax Foreign taxes: 30 and used 16, leaving a carryover of 14, which has pulled through to Form 1116

AMT Foreign Taxes: 30 and used 11, leaving a carryover of 19.

I have no idea where the 16 would have come from for Regular Tax Foreign Tax utilization. How can I get it to correctly show carryover of 2 instead of 14 on Form 1116?

The AMT Foreign Tax seems to have the numbers flipped.

Why do the final forms not reflect the numbers that were entered during the interview?

M

Marie75Author

I have found where the 16 came from. I started my taxes in Turbo Tax last year and even with the "Live" help, I could not get some confusing questions answered so I ended up taking my taxes to a CPA to complete. I pulled up the 2018 file out of Turbo Tax (again, it was never filed through Turbo Tax), and I see that it had calculated the Foreign Tax Utilization as 16, leaving 14 as a carryover. However, the taxes that were actually file used a Foreign Tax Utilization of 28, leaving a carryover of 2. So, the question is how can I get the Form 1116 (that will be submitted with my 2019 taxes) and the supporting Foreign Tax Credit Carryover Statement to actually use the numbers that I entered as I was going through the 2019 interview section, and not use the numbers that apparently are pulling from the erroneous 2018 Turbo Tax file?

JohnB5677

There are two things I'd like you to look at.

There is a heading "Tell Us About Your Foreign Taxes:. The second box says " You have no carryover, or you agree not to use them. Be sure the None of these apply is checked.
If you go through most of the questions you will come to Foreign Tax Credit Carryover. Please be sure that this is up to date and accurate.

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M

Marie75Author

What sub-section does the question you mentioned appear under? I went through the entire Foreign Tax Credit section and did not see a screen that said this.

Thanks.