How do I enter foreign tax credit carryover? My previous filing has multiple forms 1116 for different categories.

Forum|Forum|7 years ago
June 3, 2019
3 replies
7 views

This is the first year since moving to the US that we have to do our taxes ourselves. Looking at the previous years tax return, we have unused foreign tax credit from 2013 and 2014. I'm trying to figure out how to add this to TurboTax, but my previous return has two forms 1116, one for 'Passive category income' and one for 'General category income'. Do I just combine these in TurboTax, or how should I fill it in? (I'm using the online version. Is this one of the cases where the downloadable version would be better?)

One additional complicating matter:
I sold US stocks in 2014 that required me to pay capital gains taxes in Sweden. I didn't have to pay them until end of 2015 after doing my Swedish tax filing for 2014. So I ended up paying foreign taxes for 2014 that are not present in my US tax filing for 2014 since they were paid after that declaration was done. Can I somehow enter them into TurboTax, or will it just be too complicated to be worth it?

TurboTax Premier Online

Best answer by Irene2805

Click on Federal Taxes > Deductions & Credits [In TT Home & Biz: Personal > Deductions & Credits > I'll choose what I work on].
Scroll down to the Estimates and Other Taxes Paid section.
Click on the box next to Foreign Taxes.
On the Foreign Tax Credit screen, click on the Yes box.
Continue through the interview, entering the requested information.
You will come to the Carryovers screen. Click the Yes box.
Enter your carryover amounts on the next screen -- Foreign Tax Credit Carryovers.

Since you paid the taxes in 2019, include them as a payment as you go through the Foreign Taxes section.

If you have different categories of income (passive, general, etc.) you will need to add a Foreign Tax Credit Computation Worksheet for each category of income.

As you go through the screens, you will come to the Choose the Income Type screen, which allows you to select the category for the taxes/carryover.

When you have finished entering the first carryover, you will be brought back to the Foreign Tax Credit Summary screen. Click on the Add a Foreign Tax link to go through the interview for another category of income.

[Edited | 4/14/2020 | 11:59am PDT]

Irene2805Answer

Level 15

Click on Federal Taxes > Deductions & Credits [In TT Home & Biz: Personal > Deductions & Credits > I'll choose what I work on].
Scroll down to the Estimates and Other Taxes Paid section.
Click on the box next to Foreign Taxes.
On the Foreign Tax Credit screen, click on the Yes box.
Continue through the interview, entering the requested information.
You will come to the Carryovers screen. Click the Yes box.
Enter your carryover amounts on the next screen -- Foreign Tax Credit Carryovers.

As you go through the screens, you will come to the Choose the Income Type screen, which allows you to select the category for the taxes/carryover.

When you have finished entering the first carryover, you will be brought back to the Foreign Tax Credit Summary screen. Click on the Add a Foreign Tax link to go through the interview for another category of income.

[Edited | 4/14/2020 | 11:59am PDT]

barnes-leoAuthor

Level 2

Thanks, but this completely misses the first part of the question. My previous tax return has two forms 1116, one for 'Passive category income' and one for 'General category income'. Which one do I enter on the Carryovers screen? Or do I enter both?

brucefal

Level 4

On a slightly different note, I have carryovers from TT 2014, but they were not transfered over when I started TT 2015 from the 2014 Form 1116 Wks. Do I have to enter them manually from here-on? If there is a transfer issue, you might want to alert the TT users of this failing this late in the tax year.

Neo 12

Level 2

Even after entering the carryover, it doesn’t apply 😞 I can see from manual calculation that the carryover should apply. What should I do?