Why does Turbotax not transfer Foreign Tax Credit Carryover?

Forum|Forum|2 years ago
March 22, 2024
1 reply
3 views

I had a foreign tax credit carryover last year. The only way I knew this was because I was comparing a draft print of the 2023 ALL WORKSHEETS RETURN, and comparing to the ALL WORKSHEETS print of my 2022 return. This value was not transferred over from 2022 to 2023. When searching for this issue, I read that TurboTax doesn't transfer this info. It has to be entered manually.

Why? I would not have seen this except by chance. I don't even know how many carryovers I've missed in the past...

AmyC

Level 15

The program is designed that way now. It used to carryover the credits. My guess would be that changes can occur, like audits, to change things. Great job verifying your tax return before filing!

Foreign tax credit can be carried back one year or carried forward up to 10 years so you want to keep track of your credits and which year is used. See Topic no. 856, Foreign tax credit.

To enter the carryover:

In TurboTax,

After sign into your account, select Pick up where you left off
At the right upper corner, in the search box, type in foreign tax credit and Enter
Select - Jump to foreign tax credit
Follow prompts
On the screen, Foreign Tax Credit Carryovers screen, enter information ( select Learn More for details)
See the image below

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1031MeAuthor

Level 2

Thx. I did find the area to do that. I was wondering why TT doesn't automatically carry it over. I can't find it now, but I read a post which said it always needs to be entered manually. If I do it this way, will it automatically show up for next year's tax return?