You can't utilize the foreign tax credit carryover amount if you don't have foreign earned income in tax year 2021.
- In other words, you can't the carryover credit against your US source income; it could only be applied to foreign income.
- The Foreign Tax Credit Limit : Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources.
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