Foreign Tax Credit

[AhuraMazda]

I have accumulated Foreign Tax Credit (Form 1116) for last many years. I want to use it as a deduction.
Is there a way to deduct the accumulated Foreign Tax Credit in Turbo Tax

[Mike9241]

no. you can't do that because you elected to take a credit in prior years. in any one year all of it must be taken as a credit or as a deduction  - no splitting. after 10years the c/f expires. This happens to many taxpayers. 

[AhuraMazda]

Hi Mike9241,

You say that I can't take the accumulated foreign tax credit as I elected to take a credit in prior years. If that is the case; what is the purpose of "Foreign Tax Carryover Reconciliation Schedule" also known as Schedule B  (Form 1116)?

Is there anywhere else on IRS forms I can take this credit to lower my tax bill?

Thank you.

[ThomasM125]

You may be able to carryover your unused foreign tax credits from previous years to the current year. You will see an option for this in the Estimates and Other Tax Paid section, then Foreign Taxes, which are in the Deductions and Credits section of TurboTax. When you work through that section, indicate that you want the foreign tax credit as opposed to the foreign tax deduction. After you enter your foreign income received in the current year and answer other questions, you will come to a screen where you can enter your foreign tax credit carryovers. You can only receive a foreign tax credit to the extent you have income tax on foreign income in the current year.