Form 1116 without the Schedule B is tentatively scheduled to be finalized on 03/03. Form 1116 with Schedule B is tentatively scheduled for 03/31. If your return does not contain the Schedule B Form 1116, which is used to reconcile your prior-year foreign tax carryover with your current year foreign tax credit carryover, you should be able to e-file after 03/03 (2 more days).
You will have to file by mail (after 03/31) only if your return includes Schedule B Form 1116. If your tax return does not need to include the form, you should be able to e-file after 03/03.
And yes, if you are not taking the Foreign Tax Credit, your return won't have Form 1116, so the 'file by mail' requirement would not apply. But if you don't have the Schedule B, you will be able to e-file the Form 1116 to take the credit.
Check back on the credit after 03/03 before you decide not to take the credit. If you don't need the Schedule B, you can e-file for the usually larger credit on Form 1116. If you do have the Schedule B, see below for some other foreign income options.
How do U.S. taxpayers living and working abroad report their income? FTC (foreign tax credit) OR FEIE (foreign earned income exclusion)
Options for avoiding double taxation
To avoid double taxation on Americans living abroad, the IRS gives them a choice:
- Deduct their foreign taxes on Schedule A, like other common deductions.
- Use Form 1116 to claim the Foreign Tax Credit (FTC) and subtract the taxes they paid to another country from whatever they owe the IRS.
- Use Form 2555 to claim the Foreign Earned-Income Exclusion (FEIE), which allows those who qualify to exclude some or all of their foreign-earned income from their U.S. taxes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
