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Amount Unused is the amount of qualified foreign income taxes you paid or accrued in the year, that cannot be used in the current tax year. You're allowed a carryback and/or carryover of the unused foreign tax on income included under section 951A.
Qualified foreign taxes without filing Form 1116 if you meet all of the following requirements:
This doesn't really answer the question. What do you mean by "...cannot be used in the current tax year"? What would stop all a foreign tax from being used in a current tax year?
The short answer is gross income ratio and amount of foreign tax.
1) then a ratio is computed of foreign source income (line 1a) to gross income (line 2e) = line 2f
2) 2f is then multiplied by the amount on 3c = line 6
3) line 1a is reduced by line 6 to come up with net foreign income line 7
4) line 7 is divided by taxable income (line 18) to come up with a ratio line 19
5) your FTC is then line 19 multiplied by your tax (line 16) or if smaller the amount of your FTC.
For a longer answer, see here.
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