1116 foreign pension tax credit
I have am retired and have Foreign Tax Credit carryovers from my foreign salary income for a few years.
My former tax consultant filed my pension income as General Category income and said that tax credit carryovers from wages could not be used to offset General Category pension taxes because those were active income and pensions are passive income (although he filed as general category).
This is even though I could use the same 1116 form with General Category income checked that I used before to figure out a tax credit for wages above the FEIE exclusion.
Is this true? That means I can never use that say $4000 of credit accrued unless I earn wages??? Can the Form 1116 General Category wages carryover credit really not be utilized for General Category pension income also using 1116 General Category Income???
