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Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 2020. Why didn't some amount from the previous years be deducted this year?

I have approx $1020 foreign tax credit carryover and AMT foreign tax carryover of $808. Nothing carried over. I'm confused
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2 Replies

Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 2020. Why didn't some amount from the previous years be deducted this year?

The reason  you have no foreign tax credit is because you paid no foreign taxes for TY2020.

From Pub 514:

"You cannot claim a credit for unused foreign taxes in a year to which you carry them unless you also claim a credit for foreign taxes actually paid or accrued in that year."

DaveF1006
Expert Alumni

Form 1116 I have carry forward amounts from year 2017-2019. I had no foreign tax for year 2020. Why didn't some amount from the previous years be deducted this year?

Rogge1722 is correct. Here is an IRS link that confirms his/her position.

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