Perhaps one of the knowledgeable and helpful Employee Tax Experts can answer a few questions...
It sounds like my situation is similar to many others on this forum. I'll share some rough numbers as an example:
- I've got a Foreign Tax Carryover of roughly $1700 going back to 2012
- For 2021, I paid $900 of Foreign Taxes, $600 of which can be utilized
- I'm due a significant Federal and State refund (poor planning on my part, due to crazy COVID-related issues)
So I don't want to paper file (delaying my refund) and I don't really want to give up $600 of foreign tax credit or my $1700 of carryover. I wouldn't mind deferring my carryover to future years.
Question 1: Sounds like I can efile without Form 1116, then file an amended return with Form 1116 later. I'm not clear -- can that amended return be an efile or must it be a paper file?
Question 2: As asked previously by Doug1155, but I couldn't find an answer: "can you just delete the carryover amount credited this year, so make it zero, and still claim foreign tax paid in 2021 or do you have to forego the full credit including the foreign tax paid?"
Question 3: If the answer to question 2 is yes, what happens in future years -- does the unused old carryover and any new 2021 carryover get retained for 2022?
Question 4: If there is a way to just forgo carryover this year, it would be great if an expert could share step by step TurboTax instructions like TeresaM previously provided.
Thanks to everyone who has shared their knowledge on this issue!
