Thank you @DaveF1006 that helps.
One final question for the cash basis FTC.
Consider below timeline for foreign income withholding and tax return:
June 30, 2023 - $500 withheld in taxes
Sept 30, 2023 - $500 withheld in taxes
Dec 31, 2023 - $500 withheld in taxes
Mar 31, 2024 - $500 withheld in taxes
1. If foreign tax return isn’t filed, how much can be claimed as FTC on US 2024 return? Is it full $2000 or $500 which was withheld during 2024?
2. If Indian tax return was filed and processed with refund of $900 in June 2024, how much can be claimed in FTC
a.2000-900 =$1100 or
b. 500-900 =-400 (foreign income of 400) in addition of 500 withheld during 2024?
