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How does form 116 compute Foreign Tax Credit Carryovers? I'd prefer to take the credit this year - but Turbo tax is bumping about 1/3 of the credit out to 2017.
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How does form 116 compute Foreign Tax Credit Carryovers? I'd prefer to take the credit this year - but Turbo tax is bumping about 1/3 of the credit out to 2017.
Amount of foreign tax credit allowed for a taxyear is based on a ration of foreign income to world income. The un-allowed portion can be carried forward upto 10 years but again allowed based on a ratiometric fashion. You can take deduction for the whole amount ( itemized deduction under taxes paid )
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How does form 116 compute Foreign Tax Credit Carryovers? I'd prefer to take the credit this year - but Turbo tax is bumping about 1/3 of the credit out to 2017.
Amount of foreign tax credit allowed for a taxyear is based on a ration of foreign income to world income. The un-allowed portion can be carried forward upto 10 years but again allowed based on a ratiometric fashion. You can take deduction for the whole amount ( itemized deduction under taxes paid )