How to add my previous years foreign tax carryovers when I don't have foreign income and haven't paid foreign taxes this year?

[hristoterezov]

@pkalmost! I plan to use the same version of TurboTax desktop on Windows. But I think form 1116 won't be autogenerated for my case since I don't have any foreign income. would in this case TT allow me to create and manually fill form 1116 schedule b

[pk]

@hristoterezov , while I have not tried that but absent any program logic restriction, I see no reason for  the scheme to work.  I am assuming that you are going to be using the forms mode anyways.  Just try it out and see if this works  and if it passes all the checks  required for e-file.

 I don't know of any other way to force a Schedule-B inclusion.

I do not believe  that IRS actually goes back to check the progression of the schedule-B contents from year to year -- it is more for your own records to justify if challenged.  Obviously if you do have the  Schedule-B on your records, it cannot hurt.

Good luck

[hristoterezov]

@pk  my idea was to make sure it works and then pay for TurboTax desktop in order to avoid spending money for something that won't work for me...

In order to test it I'll have to first buy TurboTax desktop, right? Otherwise if I have already bought it I would have just tested it and not ask the question....

Thank you for the response tho...

[pk]

@hristoterezov , if you wish I can try it on my copy of the product 

Will be back in a ziffy

[pk · Accepted solution]

@hristoterezov , it does work.

You have to tell TurboTax that you have foreign  Tax credit / or carry over.  Then  you choose the category etc.  I used zero/empty foreign tax but chose country as RIC -- I am in the Foreign Tax credit   under  Deductions and Credit tab.  Pretend  that you have credit to claim -- just leave amount blank.  Once everything is set  -- you go to forms mode , and choose the  form 1116  Comp. worksheet.  Down  towards the middle of the  worksheet you will find the carry-over entry area.

The method I suggested earlier  for adding forms will not work because entries are not allowed.   I would not be surprised  if a similar facility also exists in the on-line version.  May be you should go try that first before you spend.

[hristoterezov]

@pkThanks very much for testing this! Just wanted to verify - at the end do you see the form 1116 schedule B filled or just a worksheet?

[hristoterezov]

@pkdid you get a change to see if those steps actually result in having form 1116 schedule b or just a worksheet?

[AmyC]

The worksheet will carry the information over. I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards,  and basis. This can be a digital or paper notebook.

@hristoterezov 

[hristoterezov]

@AmyC  thank you for the advice! Actually i keep all tax related documents for way more than 3 years already. I don't think you understood my question. I was asking if the described approach would result in actually having form 1116 schedule B in the tax return or not.

Anyway I bought TurboTax desktop for Windows and tried it. It actually will generate form 1116 schedule b with the carryovers! Now my problem is that it won't generate the AMT version of the form and the schedule.  It prompts me to enter the carryovers for the AMT version but when I print the return I see only the regular form 1116 and schedule B. Any idea how to make TurboTax to include the AMT version too?

[AmyC]

Since you have the desktop version, you can go into Forms mode. On the top left, select open form. Select the AMT version of Form 1116, enter a name if requested. Once the form is open, you can right click (or command click for MAC) and use override to force entries. You can print the form on the bottom left of the form on windows (or use the print key on a MAC).

Your forms are what is critical. The IRS is changing things. They have not been keeping up with carryovers. It is in your best interest to have your paperwork in order. Great job  keeping records from time or purchase until way after disposal of an asset. Great strategy!

[hristoterezov]

@AmyCIf I do the steps I can print it but at the end of the day i would like to e-file and I was thinking that since it is not appearing when I do press "print tax return" it won't be included in the e-file. Do you know if this is the case? Otherwise trough the open form flow I can see it and it had the correct values...

[MarilynG1]

No, if you don't see the form included when you print all 'Forms and Worksheets Required for Filing' it's not included in the Efile.

You can choose to print just that individual form or choose 'Tax Return, All Calculation Worksheets' to keep a copy for your records.

@hristoterezov 

[hristoterezov]

I'll definitely e-file. Do you know why the form is not included?

[DaveF1006]

It may have dropped off since you had no foreign tax activity for this year. You just need to to keep track of it however just in case if you do have foreign tax activity in the future.