Foreign Tax Credit - Form 1116 and Related Worksheets

[LA2025]

Hello, 

This is my situation:

• My 2024 foreign tax credit carryover is $344
• My 2025 foreign taxes paid are $345 (from 1099-DIV)
• I am not claiming any foreign tax credit in 2025, so Schedule 3 shows 0
• I want to preserve both the 2024 and 2025 carryovers for future years

Given that:

1. Should I still file Form 1116 in 2025 to preserve these carryovers, even though the allowed credit is zero?
2. Do I need to file any of the supporting worksheets, such as the Foreign Tax Credit Computation Worksheet, or are those for my recordkeeping only?
3. Is it expected that the Foreign Tax Carryover *Reconciliation* Schedule may not generate when there is only a simple carryover situation like this?

Also, in TurboTax Desktop, Form 1116 and the computation worksheet only print individually from Forms Mode and do not appear in any full print packet. I want to confirm what actually needs to be filed before contacting support about this behavior.

Many thanks!

[pk]

@LA2025 , I have never tried this scenario --- but will definitely  replicate the scenario.

What I understand  is that   (a) you enter 1099-DIV with  foreign taxes  paid of   US$345;  (b) you have a carry-over FTC of  US$344;  you choose not to enter  "Foreign Tax Credit " under  "Deductions and Credits" tab.  Thus  TT never asks you if you want "credit" or  "deduction"  for the taxes  paid.  Nor is there a form 1116  produced.   However, you want to assure  yourself that both the  carried -over and the new  FTC are carried over to next year.

While, I do not know if you can ,  it seems to me  that if you do not claim any credit, then it may be lost.

Please, are my understanding of the situation correct ?

I will in the meantime  try this out and see how TurboTax behaves.

[LA2025]

Thank you for your reply. I think I've figured this out.

Best regards.