This is a little bit confusing, I don't think you understood my question.
I didn't pay or owe foreign tax in 2020, but I paid foreign tax in previous years, so I have carryover tax credit, which some of it (small amount $5) I'm allowed to deduct on my 2020 tax return.
The foreign tax credit shows on my 2020 Form 1040 Schedule 3 and Form 1116 Part IV Line 35. Part II on form 1116 should be left blank because I didn't pay or owed foreign tax in 2020.
My 2020 foreign interest income is $75, which I show on Schedule B and Form 1116, but there was NO foreign tax paid or owed in 2020. Do I still have to mark any box for Paid or Accrued on form 1116 even if foreign tax was not paid or owed? If I left it blank, it would show an error and wouldn't let me E File. I have to file form 1116 because I'm taking credit for taxes paid in previous years and I'm showing 2020 foreign interest income. Thanks.
