Deductions & credits

Thanks you for your quick and very explicit reply. Ver helpful.

 

As I understand it:

-I will file an 1040X for tax year 2021. I only need to fill in my information at the top and then skip to Part III and state in the explanation section "This amended return and Form 1116 are for a change in foreign tax credit that increases U.S. tax liability.” 

 

- I will include a new amended Form 1116. Since all the tax was refunded, should I fill in the income amount the same and show the taxes paid as $0, eliminating the entire amount previously reported?

 

-I will include a statement giving details regarding how the foreign tax paid in 2021 was refunded and reduced my credit to $0 for 2021. Shall I make this a separate statement page, or do all of the detailed explanation on Part III of the 1040X?

 

I have not used any of the carry forward FT credit in my 2022 return and will just delete the form from Turbo Tax.