Foreign Tax Credit Carryover in TurboTax 2017

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tidelandp
Posts: 332
Joined: Fri Feb 29, 2008 12:02 am

Foreign Tax Credit Carryover in TurboTax 2017

Post by tidelandp » Sun Apr 15, 2018 9:48 pm

This is the first time I’m using TT to complete Form 1116, and I’m unsure if my documentation is complete. TaxAct, which I used for 2013, had a Foreign Tax Credit Carryover Worksheet, divided between carryovers from prior years (Part I) and carryovers to 2014 (Part II). I’ve not seen anything comparable to Part II of TaxAct’s worksheet in TT.

My unused credit from 2013 ($251) appeared in Part II of TaxAct’s carryover worksheet. For 2014 to 2016, I elected not to file Form 1116, leaving the $251 unused going into 2017.

The foreign taxes I paid in 2017 exceeded my limit by $253. TurboTax correctly shows the $251 from 2013 in line 10 on Form 1116, and in an “Explanation Statement” for that line. There’s also a “Foreign Tax Credit Carryover Statement,” detailing carryovers from prior years (2007 to 2016). However, unlike with TaxAct, there’s nothing showing the carryovers to the next year, 2018. Am I missing something?

The foreign income is all from 1099s.

talzara
Posts: 632
Joined: Thu Feb 12, 2009 7:40 pm

Re: Foreign Tax Credit Carryover in TurboTax 2017

Post by talzara » Mon Apr 16, 2018 11:04 am

tidelandp wrote:
Sun Apr 15, 2018 9:48 pm
The foreign taxes I paid in 2017 exceeded my limit by $253. TurboTax correctly shows the $251 from 2013 in line 10 on Form 1116, and in an “Explanation Statement” for that line. There’s also a “Foreign Tax Credit Carryover Statement,” detailing carryovers from prior years (2007 to 2016). However, unlike with TaxAct, there’s nothing showing the carryovers to the next year, 2018. Am I missing something?
There is no standard format for the carryover statement. The IRS only requires that the statement give the carryover from previous years, not the carryforward to next year. Each tax software package will have its own format.

Next year, you just copy the numbers from this year's form 1116.

tidelandp
Posts: 332
Joined: Fri Feb 29, 2008 12:02 am

Re: Foreign Tax Credit Carryover in TurboTax 2017

Post by tidelandp » Mon Apr 16, 2018 1:48 pm

Thanks, talzara.

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