2025 Foreign Tax Credit Computation Worksheet

Forum|Forum|3 months ago
April 9, 2026
1 reply
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I have to reconstruct my foreign tax credit carryovers for the past 10 years. When completing the 2025 Foreign Tax Credit Computation Worksheet Section: "Foreign Tax Credit Carryovers", what number from Form 1116 do I put in the column Foreign Taxes. The actual tax paid from 1116 Line 8, or the amount from 1116 Line 14 "...the total amount of foreign taxes available for credit?

There's 2 reasons I ask:

1) It makes a huge difference in the credit carryover

2) If I use the 1116 Line 8 then 2016 and 2020 end up being negative numbers and the IRS (not to mention TurboTax) won't accept that. Of course if I should just put "0" instead of the negative number then this is easy.

Thanks in advance. I really appreciate this.

Credit

Best answer by DaveF1006

For the “Foreign Taxes” column in the Foreign Tax Credit Carryover section of the 2025 FTC Computation Worksheet, you generally use the foreign taxes available for credit — that is, Form 1116 Line 14, not Line 8.

Line 14 represents the total amount of foreign taxes available for credit after adjustments, reductions, and disallowances. This is the amount that actually enters the carryover system.

Line 8, by contrast, is simply the raw foreign taxes paid or accrued. It is not the amount the IRS considers “available for credit” and therefore not the amount that enters the carryover worksheet..

DaveF1006Answer

Level 15

Line 14 represents the total amount of foreign taxes available for credit after adjustments, reductions, and disallowances. This is the amount that actually enters the carryover system.

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jgruverAuthor

Level 2

Hi, thanks for that. I assumed it was Line 14 (and really wanted to use it as it didn't result in the negative numbers), but I've had two CPAs do my taxes for the past 6 years and both used Line 8. Since I filed my returns (Fed & CA) yesterday. I used Line 8 as I didn't get your reply until this AM.

Do you suggest I file a 1040X to make the change, or is this something I can just let go?

Thanks again for your help!

Sincerely,

John

DaveF1006

Level 15

Yes, I suggest you amend your return. You mentioned that using Line 14 makes a "huge difference." If using Line 14 results in a significantly larger carryover, you are essentially leaving money on the table for future years. If you don't amend, you are locked into the lower carryover amount you reported.

If the difference in the carryover is substantial enough to impact your future tax liability, filing a 1040-X is the standard way to protect those credits.

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