Can foreign tax credits be carried forward if the was no taxable income or tax in 2020?

Forum|Forum|4 years ago
September 24, 2021
1 reply
21 views

I am preparing a return in which there is no taxable income or tax for 2020.

There were some small foreign taxes paid on certain dividends which were reported by the brokers on the Forms 1099-DIV.

My program does not allow these amounts to be carried forward to 2021.

Is this correct which would result in losing the benefit of the credits?

ProSeries Basic

This topic has been closed for replies.

sjrcpa

Level 15

If you filled out the 1116 they should carryforward. FYI the likelihood of being able to use it is small.

If you elected out of completing the 1116 there is no carryforward.

The more I know the more I don’t know.

W

wethepeopleAuthor

Level 5

I filled out the Foreign Tax Credit Computation Worksheet and at the bottom where it says Foreign Tax Credits Carryover to 2021, it reports the foreign taxes paid in the column titled UTILIZED and zero in the carryover column.

.At the top of Form 1116 it says Form Not Required To Be Filed.

Am I missing something here?

sjrcpa

Level 15

Sounds like you elected out of filing the 1116. I don't use ProSeries so I don't know how to fix it.

The more I know the more I don’t know.

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