I want to carry over excess foreign tax credit from past years, although I am not using the credit this year. Do I need to file form 1116 or a carryover statement?

[joe5555]

I have excess foreign tax credit on general category income from 2017 and past years. This year I did not pay any foreign tax on general category income, so Turbotax does not include form 1116 or the worksheet for general category income in my return. However, do I need to file any documentation so that I do not lose this credit, since I might want to use it in the future?

[rogge1722 · Accepted solution]

TT will automatically store any unused carryovers except any that are greater than 10 years old. If you bring up the f1116 worksheet and scroll down to the Foreign Tax Credit Carryovers, you will see a spreadsheet like appearance with all the details.

[joe5555]

Dear rogge1722, Thank you for your response. I am not worried about tracking the carryovers within the software, I am asking specifically do I need to file this worksheet with the IRS this year so they are aware that I would like to continue to carrying over the excess credit.

[rogge1722]

If there was no general category foreign income, no f1116 need be filed. I'm assuming there is no income as you would draw down from previous carryovers if there were.

[joe5555]

Correct, there was no general category foreign income for 2018. Thanks!

[FSOU]

Hey Joe5555, I have the exact same question! Did you figure out what to do for your situation?

[joe5555]

@FSOU I entered the carryovers for general category income, but they did not print with my return this year because I did not have any foreign general category income this year. I used my carryover from passive category income, so information on that one was included in my return.

[FSOU]

@joe5555 thanks! I am in the same situation as you, I don't have any foreign category income but want to make sure that my credits from previous year get carried on.  I am thinking I will just enter 1116, and note it there that i have carry overs..

[KKD]

@FSOUWhere did you enter Form 1116 to just indicate carry overs? In TurboTax, it doesn't show any Form 1116 for General Category Income as i didn't have any income for current year.

[KKD]

@rogge1722After adding carryover amount, I could see Foreign Tax Credit computation worksheet for General Category Income but I don't see any Form 1116 for that category. Does computation worksheet alone act as sufficient documentation to not lose credit and use it in future?

[rogge1722]

Yes the carryover data in the comp. wks. is stored by TT for TY2020.

[KKD]

Thanks @rogge1722 for response. If i understand it right, we need not file Form 1116 to IRS for current year and still be able to use carryover credit in future years when I have income in General category and want to use the credit.