Foreign Tax Credit Carryovers

[roniasa10]

In my Tax return for 2020 under "Foreign Tax Credit Carryovers to 2021" table i have

 - $0 carryover in 2020 

 - Total carryover of $5200 to 2021

While working on Taxes for 2021, after importing the data from 2020, I am getting this error on 1116 ws form:

" Total C/O has a value.  This will require form 1116, Schedule B, which will be available on future product updates" . 

I have filled form 1116 and Schedule B  for 2021.

Any thoughts on how this can be fixed would be much appreciated. Thanks!

Thanks 

[agreber]

@roniasa10 In case you're still needing help with this issue, you should know that Form 1116, Schedule B (aka Foreign Tax Carryover Reconciliation Schedule) is a  separate form and is used to reconcile your prior year foreign tax carryover with your current year foreign tax carryover. It' not the same thing as either Form 1116 or Schedule B.

Here is a link to the instructions for Form 1116, Schedule B: https://www.irs.gov/pub/irs-pdf/i1116sb.pdf 

And here is the link for the form, itself: https://www.irs.gov/pub/irs-pdf/f1116sb.pdf

Hope this helps you make sense of things (if you haven't already).

[NV TAX 22]

I have a carryover foreign tax from 2021 and it shows up in PART III (1116)  line 10 as carryover to the current year (2022). Also shows on line 14  as a foreign tax available for credit.( I do not have any foreign income in 2022).  However, the credit never gets transferred to 1040 as a reduction of my taxes, what is going on?

[HopeS]

This could mean that you did not have enough tax liability to take benefit of the foreign tax credit carryover. If you paid higher foreign taxes on a lower US income, you may not be able to take 100% of the credit. TurboTax will tell you that you’ll have to wait until next year to take a portion of the credit.

Below is the General rule:

The foreign tax credit can offer taxpayers relief from double-taxation in certain cases where a foreign government taxes income that would also be taxed in the United States. The amount that qualifies for the tax credit can reduce your U.S. tax liability on a dollar-for-dollar basis.

• In general, the tax credit can lower your tax liability in the United States, but only up to the amount of foreign taxes paid or the U.S. tax liability on the foreign income — whichever is lower.
• If your foreign tax liability is higher, you may be able to carry the difference back to the previous year or forward to future years.

You can take the amount paid as a Credit or as an itemized deduction if you are filing Schedule A.

Both the credit and the deduction are entered in the same place. Here's what you do:

1. Open (continue) your return in TurboTax
2. Make sure you've already entered all your foreign income. If you still need to enter it, do that now
3. Select Search and search for the foreign tax credit. Select the Jump to link in the search results
4. When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation

See the Links below for more detailed information and instructions:

Foreign Tax Credit

Claiming Foreign Tax 

@NV TAX 22