When Form 1116 line 20 is greater than line 13, it is "excess limitation."
The tax limit is greater than the foreign taxes paid.
Foreign tax credits are limited by the tax on Form 1040; meaning that if you owe nothing or owe less than the Foreign Tax Credit some or all of the credit is now used in the current year - which is to say the credit is "non-refundable."
Unused foreign tax credit must be carried back 1 year before being allowed to be carried forward 10 years. It can only be carried back to a year that has excess limitation. If the prior year's return shows excess limitation, that return must be amended in order to immediately get the refund for the foreign tax credit carryback.
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