@hristoterezov , I am lost here.
(a) When you have foreign income and taxed by both US and another contracting country ( Have a Tax treaty that is ), the "prevention/mitigation of double taxation clause allows the use of form 1116 to get Foreign Tax Credit. The allowable portion for the tax year under consideration is included as a credit on your current year filing. Any remaining and unused /unallowed FTC ( US recognizes the full amount paid to another contracting country ) is then banked -- can be carried back one year or carried forward for a number years. This is carry back or carry forward.
(b) To use this " carried " Foreign Tax credit in any year ( past or future as allowed ), you must have foreign source income and some foreign taxes paid to trigger the form 1116 computation.
Given the above, please explain what you are trying to do .
I must be mis-understanding your situation. So please can you tell---
Do you have foreign source income ? for 2024 tax year?
Was this income taxed by both a foreign country ( source country ) and the USA ?
Does this foreign taxing country have a Tax treaty with the USA and in effect ?
Please help me understand.
