topic Where to enter foreign tax credit excess limit remaining? in Deductions & credits

Where to enter foreign tax credit excess limit remaining?

howardc641 — Mon, 03 Jun 2019 17:16:54 GMT

Tax firm did my taxes last year and have a couple of carry overs. They are the unused foreign tax credit from 2017 called "Excess Limit". One for each on 1116 and 1116AMT.

I see no where in TurboTax to enter this this excess limit carry over. 1116 Comp Worksheet has 4 columns for 2008-2017. Non of these columns seems to be designed to track the excess limit.

See pic

2017 non TTax = 7 tax carryover stmt from tax firm

2018 TTax = TTax 1116 Comp Worksheet.

When Form 1116 line 20 is greater than line 13, it is "ex...

ScruffyCurmudgeon — Mon, 03 Jun 2019 17:16:55 GMT

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.

TT does not carryover "Excess Limit"; only unused foreig...

rogge1722 — Mon, 03 Jun 2019 17:16:56 GMT

TT does not carryover "Excess Limit"; only unused foreign taxes.

Re: TT does not carryover "Excess Limit"; only unused foreig...

ScruffyCurmudgeon — Wed, 05 Apr 2023 08:13:44 GMT

I'll have to add that to my other criticism of TurboTax's handling of Form 1116.

So the general statement really is that there is NO carryover of Foreign Tax Credit of Prior Years which by the way is essentially that FX TX credit that could not be applied and used in the prior 10 years.