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ctmsenior
Level 1

Defining 1116 Form necessary to claim credits from 2016 to 2020

Starting in tax year 2016 through 2018 I have only claimed foreign tax credits for taxes paid, not carrying over the excess for each year.  There is excess for each year mentioned.   I want to correct his omission going forward. 

How should I  define the carry overs in my 2019 return?  My biggest problem is properly coding the 1116 sequence needed.

 

I'm using TT premier desktop 2020.  The taxes are passive income, RIC on a single 1116 

 

Thanks for help,

ctmsnr 

1 Best answer

Accepted Solutions
rogge1722
Level 8

Defining 1116 Form necessary to claim credits from 2016 to 2020

If the carryovers are passive category income, then in Forms Mode, bring up the f1116. Just under the SSN number is a quickzoom to bring up the f1116 worksheet. Click on it. Scroll down the worksheet to the Foreign tax credit caryovers. Fill in the cells for the years 2016 thru 2018. Then when you go thru the FTC interview, TT will have the carryover info available.

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4 Replies
rogge1722
Level 8

Defining 1116 Form necessary to claim credits from 2016 to 2020

If the carryovers are passive category income, then in Forms Mode, bring up the f1116. Just under the SSN number is a quickzoom to bring up the f1116 worksheet. Click on it. Scroll down the worksheet to the Foreign tax credit caryovers. Fill in the cells for the years 2016 thru 2018. Then when you go thru the FTC interview, TT will have the carryover info available.

View solution in original post

Anonymous
Not applicable

Defining 1116 Form necessary to claim credits from 2016 to 2020

 
Anonymous
Not applicable

Defining 1116 Form necessary to claim credits from 2016 to 2020

did you elect not to file form 1116 for the years 2016,2017,2018 and 2019?  if you did you voluntarily gave up all carryover for the years the form was not included.

from IRS 1116 instructions

If you make this election, the following rules apply.
You can't carry over to or from any other year any foreign taxes paid or accrued in a tax year to which the
election applies 

 

 

if you did not make the election, then the foreign taxes used for any year are those that arose in that year. the excess becomes a carryover.     example 2016 arose 900 used 600 carryover 300.  2017 arose in 700 used 600 carryover 100.  FTC's may be carried forward for 10 years. so any remaining 2016 carryover would disappear for 2027. 

ctmsenior
Level 1

Defining 1116 Form necessary to claim credits from 2016 to 2020

Thanks very much.  You've got me started at least.  When in the 1116 worksheet  the only the only Carry 'to' table carries to 2019.  No Carry to 2018 .  So I carried to 2019.  When changing to interview mode TT had correctly omitted 2019 and picked up 2016 - 2018, correctly.  

 

Here's where I'm confused again.  Going back to forms mode TT had used the Carry 'from' table, carrying from 2018.  So, is this indicating I must do a carryback and all that entails?

Also both the values supplied in Carry to are still in forms, they were not removed when TT  changed tables?

 

Thanks, you've helped move my confusion further along.

 

ctmsnr

 

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