On Mar 13, 7:58*pm, "parrisbraes...[at]yahoo.ca"
<parrisbraes...[at]yahoo.ca> wrote:
- quote -

It says nothing about it. You are correct that there is no place on
the 1116 form that discusses carryover - it is the supplemental form
that Turbo Tax provides that shows it cannot be used for carryover.
Perhaps TT is wrong, and next year I can override this and put in the
figure, but since it indicates I cannot I'm trying to understand if
there are any reasons it is saying this

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On Mar 12, 2:55*pm, o...[at]juno.com wrote:
- quote -

Ignoring the worksheet, what does the form say? As far as I know,
there is no place on the form discussing carryover.

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Summary of the issue - Turbo Tax claims I cannot carryover any of my
foreign tax credit. I was not able to use my foreign tax credit as it
was more than the federal tax that I owed (which was $0). Is this
correct? I thought if you are not able to use the full amount of a
foreign tax credit you are allowed a 1-year carryback or a 10-year
carryover.

The details are that my income last year was all from capital gains
and the amount was such that I was in the 0% capital gains tax
bracket. I held mutual funds that invested in foreign countries and
paid foreign income tax so I had about $300 of foreign tax. Form 1116
shows that (on line 13) the $300 amount as being available for credit,
but then (as I would expect in this case) line 19 shows $0 federal tax
paid and so the multiplication that is done for line 20 shows $0 as
the maximum amount of credit. So far I agree with all this.

However, Turbo Tax has a Form 1116 worksheet (Foreign Tax Credit
Computation Worksheet) that at the bottom shows for 2008 Foreign Taxes
as $300, Disallowed as $0, Utilized as $300, and so the Carryover is
$0. I've read Publication 541 and it seems to me like I should be
allowed to carryover the $300.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >