LinaJ2020
Expert Alumni

Retirement tax questions

That is correct.  Since tax credit is used to reduce your tax liability, if you do not have any tax liability, you will not benefit from applying the foreign tax credit.  However, you can carry forward these unused foreign credit to next year.  Make sure to still file a Form 1116 so that your foreign tax credit can be carried forward.  If you do not file Form 1116, you cannot carry your unused foreign tax credit to the future years.

 

@ smdb21

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