How does foreign tax carryover work?
You can carry back one year and then forward 10 years any foreign tax you paid or accrued to a foreign country or US territory on income in a separate category that is more than the limitation.
First, you should apply the excess to the earliest year it can be carried to. Start by reviewing your prior year's return to see if you can amend it, and apply the excess there. Then, apply it to the next earliest year, and so on.
The amount of adjusted foreign taxes carried forward to 2025 is the amount from Form 1116, Schedule B, Page 2, Line 3, column (xiv). You'll need to attach Form 1116, Schedule B to your return if you enter a foreign tax carryover.
*If you need to do this, you'll need to print and mail your return. FreeTaxUSA doesn't currently support e-filing Form 1116, Schedule B.
The carryback-carryforward period of ten years can't be extended even if you're unable to take it in one of the years.
Finally, a foreign tax credit carryover cannot be claimed unless you also paid foreign taxes in the same year.
First, you should apply the excess to the earliest year it can be carried to. Start by reviewing your prior year's return to see if you can amend it, and apply the excess there. Then, apply it to the next earliest year, and so on.
The amount of adjusted foreign taxes carried forward to 2025 is the amount from Form 1116, Schedule B, Page 2, Line 3, column (xiv). You'll need to attach Form 1116, Schedule B to your return if you enter a foreign tax carryover.
*If you need to do this, you'll need to print and mail your return. FreeTaxUSA doesn't currently support e-filing Form 1116, Schedule B.
The carryback-carryforward period of ten years can't be extended even if you're unable to take it in one of the years.
Finally, a foreign tax credit carryover cannot be claimed unless you also paid foreign taxes in the same year.
