topic Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 2020. Why didn't some amount from the previous years be deducted this year? in Deductions & credits

Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 2020. Why didn't some amount from the previous years be deducted this year?

arejfour — Sat, 06 Mar 2021 14:59:36 GMT

I have approx $1020 foreign tax credit carryover and AMT foreign tax carryover of $808. Nothing carried over. I'm confused

Re: Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 2020. Why didn't some amount from the previous years be deducted this year?

rogge1722 — Sat, 06 Mar 2021 15:58:23 GMT

The reason you have no foreign tax credit is because you paid no foreign taxes for TY2020.

From Pub 514:

"You cannot claim a credit for unused foreign taxes in a year to which you carry them unless you also claim a credit for foreign taxes actually paid or accrued in that year."

Re: Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 202...

DaveF1006 — Tue, 09 Mar 2021 19:32:08 GMT

Rogge1722 is correct. Here is an IRS link that confirms his/her position.