But I can't use the credit this year because I have a (overall) loss.
i know i can carryforward the credit for 10 years. But where should be the "unused" credit stated?
Go thru the foreign tax credit interview. Then 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.
First of all, make sure you have manually entered the carryforward amount ( if it was not transferred over from the previous years) in the "Foreign Tax Credit section"
Here are the steps:
- Open up your TurboTax account and select Pick up where you left off
- At the right upper corner, in the search box, type in "foreign tax credit" and Enter
- Select Jump to foreign tax credit
- Follow prompts
- On screen, " Foreign Tax Credit Carryovers", enter amount
- See image
If you can't claim a credit for the full amount of qualified foreign income taxes you paid or accrued in the year, you're allowed a carryback and/or carryover of the unused foreign income tax, except that no carryback or carryover is allowed for foreign tax on income included under section 951A. You can carry back for one year and then carry forward for 10 years the unused foreign tax. To read more, click here:
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