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Help with state tax credit for foreign tax credits

For Arizona residents who have foreign tax credits on federal returns, can an investor claim foreign tax deductions in  az taxes as well? Anyone know how long back one could amend returns to claim these credits if the individual never entered these expenses previously?
Thank you.

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1 Best answer

Accepted Solutions
DaveF1006
Expert Alumni

Help with state tax credit for foreign tax credits

Yes, you can claim a foreign tax credit on your Arizona return even if you didn't claim on a federal return. According to this Arizona source you must generally file an amended return within four years from the date you filed the original return.

 

If you select the state taxes tab and begin working on the Arizona State Return, there will be a question that asks if you paid taxes to Another State or country. This is where you will enter this information.

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3 Replies
DaveF1006
Expert Alumni

Help with state tax credit for foreign tax credits

Yes, you can claim a foreign tax credit on your Arizona return even if you didn't claim on a federal return. According to this Arizona source you must generally file an amended return within four years from the date you filed the original return.

 

If you select the state taxes tab and begin working on the Arizona State Return, there will be a question that asks if you paid taxes to Another State or country. This is where you will enter this information.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

Help with state tax credit for foreign tax credits

Hi there, I have the same question but for New York. When I go to this section of the NY form, I only see dropdowns for states or Canadian Provinces, but no foreign countries. Where do I enter this for NY?

AmyC
Expert Alumni

Help with state tax credit for foreign tax credits

You don't. Many states do not allow foreign tax credit and NY is very limited as you describe. NY state credits state:

 

This credit is allowable only for the portion of the tax that applies to income sourced to and taxed by the other taxing authority (state, a local government within another state, the District of Columbia, or a Canadian province) while you were a New York State resident.

@Jenniferjuniper 

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