- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
The only thing I can think of related to your question would be if you want to take the deduction or credit. If you chose the credit, there would be no carry over. You get that question at Federal Tax/ Deductions & Credits/ Estimates and Other Taxes/ Foreign Taxes. There it will ask you if you want the Deduction or Credit.
Depending on your situation, if you select the "Deduction" and end up taking the standard deduction you will lose the benefit of the foreign tax credit. If you are fortunate enough to have enough deductions to be able to itemize deductions, selecting the "Deduction" vs the "Credit" will probably give you the most favorable result.
If you are using the standard deduction however, you should select the "Credit" and will need to deal with this TT form issue. It is likely that you will never be able to use this carryover unless you plan to actually work in a foreign location. One way to get the credit and be able to E-file would be to go to the error and move the carryover amounts to the denied column for both the normal return and the AMT calculation that is just below it on the form. Then you could always file an amended return later if you chose but no numbers will change on the actual return since they were all correct anyway.