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Level 3
posted Mar 1, 2021 8:36:23 AM

Foreign Tax Credit not working?

I have received a credit in the past for paying taxes to foreign countries.    I entered the information and no credit was applied.     What am I doing wrong?   

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1 Best answer
Level 9
Mar 1, 2021 9:27:43 AM

Since the tax is zero, the credit cannot be used but it can be carried over.  If you have been thru the foreign tax credit interview, then to assure the unused amount is carried over,  open the Federal Information Worksheet .  Scroll down to Part 6. The fifth paragraph is labeled  “Foreign Tax Credit (Form 1116).  Checkmark the box to file form 1116.

 

 Then bring up the foreign tax credit comp. worksheet. Scroll down to the bottom to the carryover section and you should see the credit carried over to 2021.

4 Replies
Level 9
Mar 1, 2021 9:12:46 AM

Is Form 1040 line 16 greater than zero?

Level 3
Mar 1, 2021 9:15:27 AM

No

Level 9
Mar 1, 2021 9:27:43 AM

Since the tax is zero, the credit cannot be used but it can be carried over.  If you have been thru the foreign tax credit interview, then to assure the unused amount is carried over,  open the Federal Information Worksheet .  Scroll down to Part 6. The fifth paragraph is labeled  “Foreign Tax Credit (Form 1116).  Checkmark the box to file form 1116.

 

 Then bring up the foreign tax credit comp. worksheet. Scroll down to the bottom to the carryover section and you should see the credit carried over to 2021.

Level 3
Mar 1, 2021 12:11:44 PM

Thank you!!