Do I Need to Complete Form 1116

JTax2325 · ‎March 16, 2026

I always filed my taxes with a preparer and am doing it myself for the first time this year. I had carry over foreign tax credits from 2017-2020 for a total of 6 dollars between all the years.

For this year I have 16 dollars worth of foreign taxes on passive income (1099) and nothing else. Do I need to fill out form 1116 or can I forefeit the small amount and take the simplified credit of 16 dollars for the current year and avoid the 1116 form?

MaxA1

You can forfeit the carryover and only take the current year Foreign tax credit (FTC) and avoid the need to File Form 1116. As long as your foreign taxes paid for the year are less than $300, you can opt out of filing Form 1116. You may need to delete the Form 1116 on TurboTax to remove the carryover amount from the previous year. Otherwise, TurboTax will automatically fill out the form 1116. See the following link on how to delete forms:

How do I view and delete forms in TurboTax Online?

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View solution in original post

MaxA1

You can forfeit the carryover and only take the current year Foreign tax credit (FTC) and avoid the need to File Form 1116. As long as your foreign taxes paid for the year are less than $300, you can opt out of filing Form 1116. You may need to delete the Form 1116 on TurboTax to remove the carryover amount from the previous year. Otherwise, TurboTax will automatically fill out the form 1116. See the following link on how to delete forms: