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ligneous-gasp-di
Level 2

I'm confused by the labeling on the screen where I enter Foreign Tax Credit Carryover - can you explain it?

I'm doing my own taxes for the first time in 35+ years.  All was going well until I reached the point where I need to enter the foreign tax credit carryover.  According to my professionally prepared 2015 tax return, I have a carryover for 2016.

The problem I'm having is that the descriptive field labels on my 2015 1040 do not match the labels on the TurboTax window.  TurboTax uses these field labels: Year, Foreign Taxes, Amount Disallowed, and Amount Used.  My 2015 1040 uses these labels: Year, Foreign Taxes Available, Maximum Credit Allowable, and Unused (+) or Excess (-).

Is Maximum Credit Allowable (from the 2015 1040) the same as Amount Disallowed?  (It doesn't sound like it is.)  Is Unused or Excess (from 1040) the same as Amount Used on the TurboTax screen?

This is the first spot where I've found a confusing disconnect between the TurboTax terminology and the 1040 2015 labeling.  Thanks for helping out.
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Accepted Solutions
rogge1722
Level 9

I'm confused by the labeling on the screen where I enter Foreign Tax Credit Carryover - can you explain it?

"Foreign Tax available" = "Foreign Taxes".

"Maximum Credit Allowable" = "Amount Used".

"Disallowed" remains blank as it  refers to boycott operations.

"Unused (+)" is the carryover from 2015.  It will appear on line 10 of form 1116. It is not entered on that table.  It simply is "Foreign Taxes" - "Amount Used".

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1 Reply
rogge1722
Level 9

I'm confused by the labeling on the screen where I enter Foreign Tax Credit Carryover - can you explain it?

"Foreign Tax available" = "Foreign Taxes".

"Maximum Credit Allowable" = "Amount Used".

"Disallowed" remains blank as it  refers to boycott operations.

"Unused (+)" is the carryover from 2015.  It will appear on line 10 of form 1116. It is not entered on that table.  It simply is "Foreign Taxes" - "Amount Used".

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