Foreign tax credit section 3 line 10

[crgcrg]

I'm trying to figure the foreign tax credit for 2021- previous years  I had an accountant do it and I've tried to follow how it was done. I have carryover amounts from 2018 -2020. The only credit I have is passive income from mutual funds in amount of 109.00. In previous years it was also from mutual funds and my accountant did a credit for the amount I paid in foreign tax, but was able to zero out line 10 so that I didn't get a larger deduction than I had actually paid and the excess was added to the carryover.  When I zero out line 10, the program generates an error in the form. I would like to continue to carryover the deductions in case needed in the future. I'm pretty sure I can't take a credit for more than I've actually paid - so how do I zero out line 10 but still be able to file my taxes online with the program. This is the second tax program I have tried because the first wouldn't let me file online and also tried to give me a larger credit. 

Please help!

[Anonymous_]

Probably @pk can answer this one.

[pk]

@crgcrg , just curious, why you do not want to take the credit -- at the amounts you are quoting you don't have fill out any forms  , the  whole amount is available  under safe harbor rule.

The reason I ask is  because as you accumulate the credits, first  these  cannot be gotten out without sufficient foreign income -- because availability per year is based on a ratio pf foreign income to world income  and so you need larger and foreign income to  world income ratio to drain the pool.

I really would like to her on this -- because you have play in forms mode  ( you want to recognize it  but want to bank it  i.e. not recognizing any foreign income ).

Am i being impertinent asking this question ?  Please forgive

pk

[Mike9241]

was there form 1116 in each and every year's return?

a single individual can claim up to $300 in FTC from passive income without filing form 1116, It's $600 for a joint return.

the penalty for not filing form 1116 for any year in which there is either FTC for that year or a carryover is that any carryover is forfeit

[crgcrg]

I do want to take the 109.00 credit, but I assume I can't take more since the carry over (which was on form 1116 ) was not really money that I paid in foreign tax. My accountant previously just did the credit for the amount I actually paid in foreign tax and carried over the excess. I assume he did it in case I need to use it at some point. He wouldn't enter anything on line 10 and my foreign tax credit was just the amount I paid in foreign taxes.

[crgcrg]

Turbotax is calculating that I can take 523.00 as the foreign tax credit, but I assume I can't take more than the 109 that I actually paid.

[pk]

@crgcrg  cannot tell if this makes sense. It is possible that you have carryover credits  plus this year's portion.  Look at the form to see how it is computing the $523.  If it says  that is what is available  then that is what you will get as an offset against your current tax liabilities.

Need more data to understand  but generally TurboTax is correct.

pk