You can only get a foreign tax credit to the extent you have US tax on foreign income in the current year. Your foreign income would be divided by your total income to come up with a percentage. You would multiply that percentage by your income tax to determine the portion applicable to your foreign income and that would determine how much of your foreign tax is allowed as a credit in the current year. Lets say your foreign income is $500 and your total income is $50,000, 1% of your tax would be allowed as a foreign credit. If your income tax was $1,950 then your foreign tax credit could not be more that $19. The amount of your foreign income in the current year is what would limit the foreign tax credit.
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