pk
Level 15
Level 15

Deductions & credits

@hristoterezov , yes that is correct.  To be able to use your Un-allowed /carried over FTC you must have Foreign  income that is being taxed for the current year.  What the form 1116 is trying to do is meet the requirement(s) of  the "avoidance/ mitigation of double taxation  " clause  of the Tax treaty in effect between US and that other country / countries .

 

Does this make sense ?