Christian Posted January 30, 2023 Report Share Posted January 30, 2023 I have taken on a client who has a Foreign Tax Credit from 2021 which he had to carryover to this year. I looked to see if I might place it on Schedule B of the 1116 as a carryover but do not see an applicable line. I can count on one hand the number of Form 1116s I have prepared. The amount involved is some $347. His info indicates none of his funds had any Foreign Tax taken out in 2022. I am just wondering if I may put it on Schedule 3 of Form 1040 on line z identifying it as a carryover from 2021 ? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted January 30, 2023 Report Share Posted January 30, 2023 Bring up the Pages & Worksheets list and choose Sch B (1116) - Credit Carryback / Carryforward 5 Quote Link to comment Share on other sites More sharing options...
Christian Posted January 31, 2023 Author Report Share Posted January 31, 2023 MANY thanks Abby as it looks like it will give them the credit. The form is a real labyrinth ! 1 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted February 1, 2023 Report Share Posted February 1, 2023 Just make sure he had some foreign income, details of which should be buried in the brokerage statement somewhere. The credit only applies to foreign income so the carryover will reduce the US taxes on that income. I had a client with several thousand in FT credit carryovers who kept questioning me about why I wasn't applying them. He had liquidated all his mutual funds and had no foreign income, so the carryover was wasted after ten years. 5 Quote Link to comment Share on other sites More sharing options...
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