Can I combine foreign tax credit carryovers from different categories of income?

[mdcbk]

I have a foreign tax credit carryover from 2020 in the General Category of Income, due to a distribution from a Canadian RRSP. I have no carryover from Passive Category Income. This year (2021) I only have Passive Category income from foreign tax paid within mutual funds. In the Foreign Tax Credit interviews, it asks for carryover from previous years. Do I enter '0', since I have no Passive Category carryover, or can I add in the carryover from General Category income? I'm using Turbotax desktop, US citizen, living in US. 

[rogge1722]

Carrybacks and carryovers are figured separately for each separate income category.  Carryovers from the general category cannot be used for passive category.

[mdcbk]

Thanks! After poring over IRS publications, I had come to the same conclusion, but I appreciate the confirmation.

[JohnW152 · Accepted solution]

A carryover for one category of income can’t be applied to another category of income.  rogge1722 is absolutely correct. 

You have to compute your carrybacks and carryovers separately for each separate limit income category.  

Sometimes this will result in carryovers you can’t use, but keep in mind the possibility of a carryback, as well.

Please see Carryback and Carryover in the IRS’ 2021 Publication 514 for more information.