How to enter 2021 foreign tax credit carryback from 2022. I used the 2021 foreign tax credit carryover screen but no credit shows up in 2021 amended return.

Assuming you’ve gone through all the Foreign Tax Credit screens and are seeing no credit, you may be making an incorrect entry, but it may also be an accurate result. One reason they allow you to carry it back and then forward so many years is that it can be very difficult to use!

 

The first thing to check (which you may have already done) is for a tax liability on line 16 of the 2021 1040 (if there was none, that would mean no credit or no additional credit, as there was nothing to apply it toward). Also, if you already had a credit on that return, then the carryover normally would not increase it with an amendment (assuming you were already getting the maximum based on that year’s foreign-source income).

 

If you didn’t have a credit, that probably means there was no foreign income (and the credit is limited to your U.S. tax on the foreign part of your income). If you print your Form 1116, you should be able to see the carryback being added to foreign tax paid on line 10, and then your possible total Foreign Tax Credit being limited by your foreign income and your tax liability on that return in lines 17—24. 

 

@linda-conley-gma, if I’m on the right track with these possibilities, I hope the clarification helps (even though a refund would be even better!). And as long as you continue to use TurboTax (and we certainly hope you do!), the program will be tracking your carryover and applying it in the event you can eventually use it. But if I’m barking up the wrong tree, be sure to re-post and someone here can help you with the specific entries you’re making...

She also asked HOW TO ENTER CARRYBACK information on an amended 2021 return, which is my question, also. Could you kindly explain it? 

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.” If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040-X for each tax return you are amending.

 

To see further details on how to amend, 

 

In TurboTax online,

• 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 Excess Foreign Tax Credit, select Learn More.
• Follow the prompts
   
• @MsTeries

I am using Ttax for Windows 10 on my PC. I'll see if those instructions work with my version.

Keep in mind also that if you had no  foreign income in 2021, that credit will not be utilized. 

TU. I did figure out where/how to enter the carryback. So, in 2021 (per my TTax filing) I paid $3,051 in foreign taxes, utilized $$1,571, and carried forward to 2022 $1,480.  In 2022, I paid foreign taxes of $3,073 and got a credit of $473.  Ttax told me to carry back $2,600 to FY 2021. I did so, and it did not affect my 2021 tax debt.

 

My question is: Is there any point in filing an amended 2021 return, in order to "preserve" that $2,600 credit for future years, or not? Thanks in advance for your help.

NG