I have an excess foreign tax credit for 2024. Desktop Turbotax H&B tells me I might need to file an amended 2023 return for a carryback, subject to some conditions. My question: where do I find this "Amount Used"? What line on what form? Should I be looking at the 2024 return or the 2023 return? TIA!
@form8606 , since you are using Windows download 2024 Home & Business,
(a) On the top ribbon right hand side, click "forms"
(b) Screen now shows two panels -- left hand side shows all the forma in your return, both federal and State.
(c) Under the federal forms you will see form 1116 followed by one that says "1116 comp works." Select this
(d) You will now see the , in the right panel the worksheet with the heading "Foreign Tax Credit Computation WorkSheet" This is where you will find any carry-over from all years prior . It should also show what the amount of "allowable FTC " for the current year and any available for carry back or forward.
Note that to use any of the credits available, in a tax year, you also must have foreign source income in that tax year. And of course the same limitation rules for form 1116 will still apply.
Does this help ?
Thanks for your speedy response. 🙂
Just to be sure that I understand this correctly ... I will not be able to do a carry back from my 2024 excess ftc if one or more of the following is true:
- I had no ftc in the relevant category in 2023, or
- my 2023 ftc in the relevant category was MORE than the amount in my 2024 Form 1116 worksheet, "foreign tax credit carryovers to 2025" section, regular tax table, year 2024, "utilized" column, or
- in 2023 I didn't file a form 1116.
If I meet any of the above conditions, then I don't need to file an amended 2023 form and TT will automagically apply this as a excess ftc carry forward in TY 2025.
Do I understand this correctly?