Hi,
I have unused foreign tax credit from previous years periodic RRIF withdrawals categorized as 'General category income'. In 2021, I paid foreign tax for dividend income, which I think should be categorized as 'Passive category income'. In this case, can I use my unused foreign tax credit from 'General category income' against my 'Passive category income' to increase the foreign tax credit for 2021?
Thanks!
Unused Foreign Tax Credit
Moderator: Mark T Serbinski CA CPA
Re: Unused Foreign Tax Credit
Got one more question. Is there any way I can see the breakdown of unused foreign tax credit from previous years?
Re: Unused Foreign Tax Credit
The carryforwards are category-specific, so you cannot cross them over.
Every year you file an 1116, your tax software should generate carryforward table(s), based on previous returns made with that software. Otherwise you need to track these by going back through your returns. Another reason to use software to do 1116s.
This year, for the first time, IRS is producing an official form to track this, 1116 Schedule B, which now MUST be included with your return, so that they, and you, can have this information for future use.
Every year you file an 1116, your tax software should generate carryforward table(s), based on previous returns made with that software. Otherwise you need to track these by going back through your returns. Another reason to use software to do 1116s.
This year, for the first time, IRS is producing an official form to track this, 1116 Schedule B, which now MUST be included with your return, so that they, and you, can have this information for future use.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best