Unused Foreign Earned Income Credits
Moderator: Mark T Serbinski CA CPA
Unused Foreign Earned Income Credits
I have accrued a number of Foreign earned income credits working in Canada for 4 years. If I relocate to another country outside the US with a lower marginal tax rate (Singapore) am I able to use the credits or is it country specific? Any advice on this is much appreciated.
Re: Unused Foreign Earned Income Credits
I'm thinking you are referring to Foreign TAX credits (FTC), tracked through form 1116. Foreign earned income exclusion (FEIE), reported on Form 2555 is a different process, in which you exclude the foreign wages; there is no carryover for that.
FTCs are only country-specific in the year they are paid/accrued. Once carried forward, they can be used against any foreign income (for the particular category). So, in future, once you have 'used-up' the current year Singapore tax, you will draw down the carryovers in your account earned in canada.
FTCs are only country-specific in the year they are paid/accrued. Once carried forward, they can be used against any foreign income (for the particular category). So, in future, once you have 'used-up' the current year Singapore tax, you will draw down the carryovers in your account earned in canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Unused Foreign Earned Income Credits
Great, thanks for the response nelson. Yes my apologies on the ambiguous / erroneous terminology, I was indeed referring to FTCs.