To use the foreign tax credit carryforward, follow these steps:
- Click on Federal Taxes > Deductions & Credits [In TT Home & Biz: Personal > Deductions & Credits > I'll choose what I work on].
- Scroll down to the Estimates and Other Taxes Paid section.
- Click on the box next to Foreign Taxes.
- On the Foreign Tax Credit screen, click on the Yes box.
- Continue through the interview, entering the requested information.
- You will come to the Carryovers screen. Click the Yes box.
- Enter your carryover amounts on the next screen -- Foreign Tax Credit Carryovers.
Since you paid the taxes in 2020, include them as a payment as you go through the Foreign Taxes section.
If you have different categories of income (passive, general, etc.) you will need to add a Foreign Tax Credit Computation Worksheet for each category of income.
- As you go through the screens, you will come to the Choose the Income Type screen, which allows you to select the category for the taxes/carryover.
- When you have finished entering the first carryover, you will be brought back to the Foreign Tax Credit Summary screen. Click on the Add a Foreign Tax link to go through the interview for another category of income.
@horbie21
answer from IreneS
