Foreign Tax Credit - Carryback (Asking Again)

Forum|Forum|6 years ago
July 16, 2020
5 replies
54 views

I do need help on this, clear help please. A client of mine with foreign income in 2017 and Unused Foreign Tax Credit in 2017 will like to Carryback some of the Unused Credit from 2017 to 2016, so as to clear up the tax due in 2016. My client is filing back taxes for a number of years. Client has been an employee in a foreign country earning foreign income all this time.

How on Proseries can I do a FTC Carryback. The form 1116 Foreign tax credit Comp Worksheet only allows for Carryforward to the future years. Keep in mind, whatever I do on this worksheet, automatically creates an explanation statement. I will like it to say "Total Foreign Tax Credit Carryback from 2017" $$$

Thanks

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

I see what you mean now.

You can either (a) override the amount to enter a number in Line 10 and then enter your statement, or (b) enter the number on the carryforward worksheet and override the statement to say "carryback from 2018".

Due to the override, you may need to disable error-checking when you e-file it.

T

TaxGuyBill

I'm not sure exactly how it shows up in ProSeries, but the carryback number is put on Line 10 of the 1116. That is on the amended 2016 tax return.

There is foreign income in 2016, right?

Does that help at all???

A

Akinofe67Author

Level 3

Yes, there is Foreign Income on 2016 return, and Foreign Tax Credit that was totally used up leaving a tax due for that year. And by the way, am not Amending, am filing back year taxes all at once.

You are right, that the Carryback number shows up on Line 10 of Form 1116. But it is linked to the Carryover worksheet. And on that worksheet is where am having trouble creating a Carryback. It's all made for Carryforward.

T

TaxGuyBillAnswer

I see what you mean now.

You can either (a) override the amount to enter a number in Line 10 and then enter your statement, or (b) enter the number on the carryforward worksheet and override the statement to say "carryback from 2018".

Due to the override, you may need to disable error-checking when you e-file it.

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