Foreign Tax Credit not applied from previous years

Hi,

Want to confirm, if there are foreign Tax credits not applied from the previous years, we cannot use them/ 'carry over' this year if we didn't file the Form 1116 before (even if the income was coming purely from dividends (=Form 1099-DIV)).

Thanks!

331

Expert Alumni

May 12, 2021 3:27:55 PM

According to the IRS, they state "If you claim the credit without filing Form 1116, you can't carry back or carry forward any unused foreign tax to or from years the carryovers were generated.".

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Foreign Tax Credit not applied from previous years