LinaJ2020
Expert Alumni

Deductions & credits

If you do not have any foreign income in 2020, you don't need to enter it on your 2020 tax return.  As long as you filed the Form 1116 in 2019 when you generated the foreign tax credit and carryforward to future tax year.  Without filing Form 1116, you give up this carryover tax break.

 

Note that when you have a foreign tax credit to claim in the future, you would need to manually enter the carryforward amount on the screen.  TurboTax will not automatically fill in the blank for you. 

 

Per IRS, If you can't claim a credit for the full amount of qualified foreign income taxes you paid or accrued in the year, you're allowed a carryback and/or carryover of the unused foreign income tax, except that no carryback or carryover is allowed for foreign tax on income included under section 951A. You can carry back for one year and then carry forward for 10 years the unused foreign tax. For more information on this topic, see Publication 514, Foreign Tax Credit for Individuals.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"