retroactive application of excess FTC to previous years

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davidrbaker3971
Posts: 6
Joined: Sat Feb 23, 2019 9:18 pm

retroactive application of excess FTC to previous years

Post by davidrbaker3971 »

Have been filing in USA for years going back to 2017 and have had excess FTC (about $1000 per year) but never used it in a carryback or carryforward to any other tax return.
Can I now start in 2018 and carryback to 2017, 2019 and carryback to 2018, etc and carryforward to future years if still unused FTC? To do this do I need to do amended returns with updated 1116 and all applicable forms?
Must I start at my earliest year with a 1116 (2017) or can I chose any year to start with(say 2019 if I dont have the tax software any more to do the 2017 and 2018 tax years) the carryback/carryforward amending?
Somewhat confused by this whole process as it seems contrary to allow taxpayer to just carryover the raw taxes paid but not allowed from one year to another without applying the ratio multiplier to it as is done in the 1116 calculation that results in the excess FTC being available.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: retroactive application of excess FTC to previous years

Post by nelsona »

You can only carryBACK to the previous tax year. And then only of you had an FTC shortfall the previous year (which of course you wouldn't have because you would have used carryFORWARD from previous years.

Most taxpayers, if there situation is pretty stable year to year will never use up previous carryforwards.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
davidrbaker3971
Posts: 6
Joined: Sat Feb 23, 2019 9:18 pm

Re: retroactive application of excess FTC to previous years

Post by davidrbaker3971 »

as I said I have not been using carryback nor carryforward so asking if i can do it retroactively back to starting with 2017 tax year. looking back IO have historically had approx $1000 more in Canada taxes paid than the FTC 1116 calculation allows me to use.
So question is, can I start in 2017 and apply carryback and carryforward 2017 up to present and assume that takes amended returns in each of those years?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: retroactive application of excess FTC to previous years

Post by nelsona »

No.

I believe I answered your question.

You can only use leftover FTC in a year (1 back,10 forward) if you have a SHORTFALL IN THAT YEAR. Given you have extra every year, you do not have any opportunity to use the leftover from other years.

That is how FTc works.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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