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Since you paid the taxes in 2019, include them as a payment as you go through the Foreign Taxes section.
If you have different categories of income (passive, general, etc.) you will need to add a Foreign Tax Credit Computation Worksheet for each category of income.
[Edited | 4/14/2020 | 11:59am PDT]
Since you paid the taxes in 2019, include them as a payment as you go through the Foreign Taxes section.
If you have different categories of income (passive, general, etc.) you will need to add a Foreign Tax Credit Computation Worksheet for each category of income.
[Edited | 4/14/2020 | 11:59am PDT]
On a slightly different note, I have carryovers from TT 2014, but they were not transfered over when I started TT 2015 from the 2014 Form 1116 Wks. Do I have to enter them manually from here-on? If there is a transfer issue, you might want to alert the TT users of this failing this late in the tax year.
Even after entering the carryover, it doesn’t apply :( I can see from manual calculation that the carryover should apply. What should I do?
After I first replied on April 22 there were several replies back that seemed to offer a way to eliminate the error TurboTax was reporting for form 1116.
My tax situation was not complicated, on my 1099 DIV form as an amount in 1a Ordinary Dividends and equal amount if 1b Qualified Dividends. I also had an amount in box 7, Foreign Tax Paid, and box 8 contained the Country Name, Canada which I had entered while filling out the input to Turbo Tax.
The solution, one which was recommended was to go to Form 1116 where Turbo Tax had checked box B - Foreign Branch Income and I changed that to Box C - Passive Category Income, which was also confirmed in the IRS instructions for form 1116. I saved the Form 1116 and reran the Check which was now OK.
I do not think this was complicated and that to me Turbo Tax did not handle correctly!
I have now submitted my Federal Tax forms which were accepted by the IRS. The bad news is still have to pay the Tax Due Amount by May 17!
What if someone worked for a US company as an expat overseas in 2021 and received a bonus from the parent company in 2022 based on the 2021 performance overseas? Can the foreign tax credit be applied against the US Tax in 2022 even if no foreign tax was paid in 2022? Also there was no presence in the foreign country during 2022. And by the way, the normal compensation in 2018-2021 was also paid by the parent company and taxed by the foreign country in those years.
If you received a bonus and if no foreign tax was imposed on that bonus, you will not be able to claim the foreign tax credit against that income even though the preceding income earned prior to the bonus was taxed by the foreign country.
Sorry I should have mentioned that my question is whether I can apply the accumulated foreign tax credit carryover from 2021 or prior against the US tax owed on the bonus paid in 2022 and based in 2021 performance even if no foreign tax was paid on this bonus?
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