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BritInVA
New Member

Foreign Tax Credit from 2024 was refunded in 2025

I have been using TurboTax for a number of years but in 2024 due to the complex nature, as a one off, I used a CPA who filed my taxes.

In 2024 I had taxable income from UK and UK emergency taxes were withheld in the UK. .... and they completed Form 1116.

 

The income was entered on Form 1040 on line 8 and Foreign Tax Credit was entered on Form 1040 Schedule 3 and then on Form 1040 line 20.

 

This Foreign Tax Credit was about 1/3 of the UK foreign tax that was actually withheld.

 

In August 2025 the UK refunded the emergency tax in full.

 

Now I am unsure how I enter this refund..... and adjustments to the Foreign Tax Credit claimed.

 

Really wanted to avoid using a CPA as was expensive and other than this my taxes are very simple.

Appreciate guidance if I can do this myself or need to go back to the CPA.

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2 Replies
pk
Level 15
Level 15

Foreign Tax Credit from 2024 was refunded in 2025

@BritInVA  What I understand from your post is  that you claimed  Foreign Tax Credit on your US return ( form 1116 ) based  on taxes paid to the UK  for the  2024 tax return.  Now there has been an adjustment of the UK tax burden.  Your only option is to "Amend" your 2024 tax return to recognize  the new situation.  Note that because  of the downward adjustment of the claimed  FT amount on your return, you may end up having to pay more to the US after amendment.

If you use  windows/ desktop version of  TurboTax --   1.you have to go into the 2024  software, recreate the 2024 return  ( i.e. recreate the filed return ); 2. Then Tell 2024 TurboTax that you want to amend this return --- remember to create a new copy ( "As-Amended " ) , now use this copy to effect the amendment process --- you should end up with a 1040-X  ( a summary ) and an update 1040.; 3. File this -- 1040-X and 1040  -- it shoudl say Amended on top of first page.;  4. Include any payments due.  Note that there is generally no need to amend the state return since  FTC was never there.

 

Is there more I can do for you ?

BritInVA
New Member

Foreign Tax Credit from 2024 was refunded in 2025

Thanks, looks like I need to use CPA again as they filed my 2024

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