Form 1116 Carry over and Carry back

[jackkgan]

Hi there, I have ~$700 foreign tax credit from Vanguard VXUS this year. I had foreign tax credit of ~$660 last year from the same. Line 21 (Maximum amount of credit) of form 1116 of my current Turbo tax form shows $3200. I have been choosing No for the question below every year as I assumed line 21 has be small than the previous year's foreign tax credit.  (My Five year tax history shows Total Credits =~469 for 2019, $624 for 2020, $490 for 2021, $624 for 2022 and $660 for 2023). Please confirm my understanding. If you recommend choosing yes, then please advise where to find the Foreign Taxes and amount used for previous years. Thank you.

[KrisD15]

Yes, select yes.

You may need to enter the amount that should be carried over and is available to use this year. You then enter how much of that you want to claim for this year's return.  

First, please look at form 1116 line 10. This will show how much, if any, foreign tax is being carried over. 

If line 10 does not show the 660 from 2023, you'll need to enter that on the screen that follows during that interview. 

TurboTax does not automatically apply any carryovers since they could have been carried back. TurboTax needs you to tell it what you carried over and how much you wish to use each year. 

The carryover you enter this year may be listed next year, but you always need to verify and select how much to apply each year. 

[Mike9241]

if you did not file form 1116 in 2023 you have NO FTC carryforward. If any existed it was lost for failure to file the 1116

under FTC rules the current year FTC is used before any carryforwards. since your 2024 FTC is less than line 21 the entire amount would be utilized in 2024.  if you had any carryforward Turbotax should have picked them up, if you properly answered the question about carryback

look at prior years if line 21 of the 1116 is greater than line 14  you have no carryforward

that note for 2025 doesn't apply yet. that would only apply if in doing your 2025 1040 you had more in FTC than you could used 

[jackkgan]

Thank you!

Providing more context and re-phrasing question:

1) Line 10 of 1116 forms of 2023 is empty.

2) I have been filing forms 1116 every year. (My Five year tax history shows Total Credits =~469 for 2019, $624 for 2020, $490 for 2021, $624 for 2022 and $660 for 2023 which match the 1116 forms I had submitted. )

3) For 1116 form of 2023, Line 21 is 2,149 and line 35/Foreign tax credit was 660. I had chosen No for that question on whether I have any foreign tax credit carry overs from prior year, please confirm if I should have chosen yes.

Also, I see below in the pdf version of my TurboTax 2023 submission:

Accordingly, request your confirmation

1) Should I choose Yes or No for that question now on whether I have any foreign tax credit carry overs from prior years?

2) If I should choose yes, then should I enter all these numbers below ? If so, appreciate your confirmation on  where to find them.