I have am retired and have Foreign Tax
Credit carryovers from my foreign salary income for a few years.
My former tax consultant filed my
pension income as General Category income and said that tax credit carryovers from
wages could not be used to offset General Category pension taxes
because those were active income and pensions are passive income
(although he filed as general category).
This is even though I could use the
same 1116 form with General Category income checked that I used
before to figure out a tax credit for wages above the FEIE exclusion.
Is this true? That means I can never
use that say $4000 of credit accrued unless I earn wages??? Can the Form 1116 General Category
wages carryover credit really not be utilized for General Category pension income
also using 1116 General Category Income???