Foreign Tax Credit - "Carryback" Option Missing

[grsing]

Hi everybody,

I'm trying to follow TurboTax's instructions for how to add a foreign tax credit carryback, amending my 2019 return. I get to the part asking me to add a country named "Carryback", but that isn't an option in the dropdown and there isn't an option to write it in. Any good ideas on how to move forward? Selecting another country messes up the calculation (it counts as taxes paid in the current year on line 8, not a line 10 carryback).

Thanks!

TurboTax's instructions:

Here are the steps to amend your return to add a foreign tax credit carryback:

- Step by step instructions for amend your 2018 return can be found at TurboTax Support site. You can follow these instructions up to the point where you are actually required to make changes to your return.
- The change you will make is in the Foreign Tax Credit interview on the Deductions and Credits tab
- Revisit this interview and continue through the interview screens until you reach the "Foreign Tax Credit Summary" screen with a list of copies of Form 1116.
- Edit the copy containing the same category of income as the credit you are carrying back. (E.g. if you have an excess foreign tax credit on General category income in 2019, select the General category in 2018.)
- Continue through the interview until you have the option to Add a Country. Click the button to add a new country and name the country "Carryback".
- Continue through the interview until you are asked to enter Foreign Taxes on Other Income. Enter the excess credit amount from 2019 here.
- Continue through the Foreign Tax Credit interview until it asks you if you are done. Indicate that you are done, and then return to the Amendment instructions to complete your amended return.
- When asked to give a reason for amending, you can enter "Excess foreign tax credit from 2019 carried back to 2018".

[rogge1722]

On your 2019 f1116, you did check that line 21 is greater than line 14 to accommodate the carryback.  The IRS instructions only call for a "revised f1116" for 2019.  I take that to mean , the revised is the same as the original except that you would insert into the f1116 worksheet the amount of the carryback on line 10 of the worksheet.

That will be added to the original amount of foreign tax paid and summed up on line 14, the total available for credit.  The end result is to increase your foreign tax credit for 2019.

[grsing]

Thanks for replying. Yes - in round numbers, without the carryback line 14 is $400 and line 21 is $4,000. I have $1,900 to carry back to 2019 from 2020, which would go on line 10 and increase line 14 to $2,300.

Sounds like we agree on what needs to be done, I just can't figure out how to make TurboTax actually do it.

[rogge1722 · Accepted solution]

If you reopen your 2019 TT return, you can go thru the interview to amend the 2019 return.  It will 1st have you re-visit the f1116.  You can use the Carryover Screen to serve as the carryback.   When completed, it then goes on to complete the 1040X.