I’m working on my 2025 return in TurboTax Desktop (using Premier) and I want to confirm whether Form 1116 needs to be filed in my situation. Here are the details: I have foreign tax paid reported ...
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I’m working on my 2025 return in TurboTax Desktop (using Premier) and I want to confirm whether Form 1116 needs to be filed in my situation. Here are the details: I have foreign tax paid reported on a 1099‑DIV (passive category). I have a small foreign tax credit carryover from 2024, and I will also have a carryover from 2025. I am not claiming any foreign tax credit this year. On Schedule 3 (Form 1040), Part I, Line 1, the foreign tax credit amount is 0. Because I am not using any credit this year, both the 2024 carryover and the 2025 foreign tax paid are being carried forward. TurboTax shows Form 1116 and the Foreign Tax Credit Computation Worksheet in Forms Mode, but Form 1116 does not appear in the print‑for‑filing packet, nor does the Foreign Tax Credit Computation Worksheet. In an earlier version of my return (before I rebuilt it from scratch), TurboTax generated a Foreign Tax Carryover Reconciliation Schedule (along with form 1116), but that form no longer appears. My questions: Since Schedule 3 shows zero foreign tax credit, am I correct that Form 1116 does not need to be filed this year? In a carryforward‑only year, do I need to file either the Foreign Tax Credit Computation Worksheet or the Foreign Tax Carryover Reconciliation Schedule with the IRS? Is it normal for TurboTax to generate only the Computation Worksheet (and not the Carryover Reconciliation Schedule) when there is only a single prior‑year carryover? I want to make sure I am filing correctly and that my carryovers will be preserved for future years. Thank you!