I'm doing a return for a friend of mine. She and her husband lived overseas a few years ago and have some significant foreign tax credit, which has been carried over for several returns (a small amount occasionally being used). This year, it is unneeded because a different non-refundable credit is sufficient to reduce their tax to zero. Given the issues with Form 1116, would I be able to file this return without Form 1116? And if I did, would it be possible to still utilize the carryover in future years if their tax situation changes and they could utilize the carryover? (My understanding is that it is STILL not possible to use Form 1116 if there is carryover -- is that correct?)
