This means that the tax credit could not be applied this year but you may carryback the credit to last year's return or carry it forward to the next ten years. Here may be the reason why your credit wasn't applied this year.
The IRS limits the foreign tax credit you can claim to the lesser of the amount of foreign taxes paid or the U.S. tax liability on the foreign income. The excess limit is created when the U.S. taxes on that foreign income are greater than the foreign taxes paid.
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