Manually add 1116 Schedule B?

[Dinkboy]

2023 was my first full year back in the US after spending 10 years working in Europe. I have no foreign taxes even though I had a very small 2022 bonus paid in April 2023 (no taxes deducted or due).

My question is how to create a Form 1116 B specifically to have the previous Carry Over totals reflected in my return.

Maybe it is not required in my return until the next time I live abroad and have foreign taxes? At which time I can update the document as needed to reflect any unexpired Carry Over amounts.

Thanks.

[ThomasM125 · Accepted solution]

A foreign tax credit can only be carried over for ten years, so if your unused foreign tax credits are from more than ten years ago, you can't use them anymore. Otherwise, you can just report them in the next year you have foreign income, assuming you reported the foreign tax and completed the Form 1116 Foreign Tax Credit on your US return in the year you paid it.

You enter the foreign tax credit information in the Estimates and Other Taxes paid section of TurboTax, and then Foreign Taxes. 

[whodatis204]

I am in a similar situation where I have excess foreign tax credit from 2021 and 2022. For 2023, I had no foreign general category income but had foreign passive income in the form of a 1099-DIV.  Are you saying that I don't need to file a form 1116 schedule B for the general category income for 2023 since I had no foreign income tax in the general category? And I would still retain the foreign tax credits for general category income from 2021 and 2022 without filing form 1116 schedule B in 2023?  I am just afraid of losing the credits from 2021 and 2022 if I don't file a form 1116 schedule B every year. 

[AmyC]

You do have to report it each year for it to carry over and Thomas is correct about where to enter. Let me expand the steps to report a carryover from a previous year:

1. Click on Federal Taxes > Deductions & Credits > I'll choose what I work on].
2. Scroll down to the Estimates and Other Taxes Paid section.
3. Click on the box next to Foreign Taxes.
4. On the Foreign Tax Credit screen, click on the Yes box.
5. Continue through the interview, entering the requested information.
6. You should arrive to the Carryovers screen.  Click the Yes box.
7. Enter your carryover amounts on the next screen -- Foreign Tax Credit Carryovers.  

See: 

TurboTax resource: Filing IRS Form 1116 to claim the Foreign Tax Credit

IRS resources: Tax Topic 856 and IRS Publication 514 Foreign Tax Credit for Individual

@whodatis204 Assuming Saints fan, go Saints!

[whodatis204]

Thank you for that. However, when I go through the worksheets for the foreign tax carryover to keep track of my 2021 and 2022 foreign tax credits, turbotax desktop for Mac does not generate the form 1116 and coinciding schedule B for my foreign tax "general category income" when I print preview before filing. I'm wondering if this is because my foreign general category income is $0 for 2023. However, based on your statement, I need to file form 1116 and the coinciding schedule B for the "general category income" to retain the credits. How do I get the software to generate the form 1116 and schedule B to reflect my foreign credit carryovers from 2021 and 2022?  

[Stsxoz]

I also have the same question.

I am able to generate these forms by entering a $1 income and a matching $1 expense, which does not change the tax outcome.

Would going ahead with this and providing an explanation statement for the expense (which is required) that explains the reason for entering this income and expense be acceptable?