No US Tax Owing Without Using FTC - Should I File FTC Anyway?

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nielkfj
Posts: 27
Joined: Fri Apr 17, 2020 2:01 pm

No US Tax Owing Without Using FTC - Should I File FTC Anyway?

Post by nielkfj » Fri Jul 17, 2020 2:36 pm

I've done a preliminary calculation for my 2019 US tax return without including any foreign tax credits for tax paid to Canada. It shows that I will have no tax owing - not a big surprise because my income was quite low last year as I didn't have any employment income and only a bit of dividend and capital gains income.

Is there any reason why I should file foreign tax credit claims for 2019 even though I don't need them for that tax year?

nelsona
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Re: No US Tax Owing Without Using FTC - Should I File FTC Anyway?

Post by nelsona » Fri Jul 17, 2020 6:41 pm

It is not a bad idea to file the 1116's in any evnt, for carryforward purposes. You never know.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nielkfj
Posts: 27
Joined: Fri Apr 17, 2020 2:01 pm

Re: No US Tax Owing Without Using FTC - Should I File FTC Anyway?

Post by nielkfj » Sun Jul 19, 2020 8:15 pm

I'm thinking I won't file any 1116's this year. Then if I need to carry forward foreign tax credits in the future I'll file an amended return for 2019.

Will this create any problems?

nelsona
Posts: 16452
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: No US Tax Owing Without Using FTC - Should I File FTC Anyway?

Post by nelsona » Mon Jul 20, 2020 12:24 pm

Not a problem
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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