Foreign Tax Credit

[audreyh1]

Yay! Fidelity has much improved their tax reporting for foreign tax paid such that now they include the foreign source income for each fund paying foreign tax in the 1099. In prior years we have had to calculate that ourselves which involved tracking down the information for each foreign fund and getting the percentages. This led to major delays as foreign source income percentages usually wasn't available until late, and Fidelity itself was the biggest culprit in terms of late disclosure.

Unfortunately this year our foreign source income wasn't quite large enough to get the full foreign tax credit. First time that happened. It doesn't look like there is any carry forward in Turbotax either.

 

[MichaelB]

I’ve used TurboTax for years and not had any issue with the carry forward.

 

[twaddle]

I mentioned in another thread that H&R Block's software completely botches this. Turns out it's an issue with other packages too, and at least one of them blames changes on the IRS servers. I'm going to sit on my hands for a while to see how it plays out.

(To clarify, there seem to be multiple issues with form 1116 handling. Not necessarily related to your carry-over issue.)

 

[RunningBum]

I have used FTC carryover and carryback with TT, with no problems. Look for the Foreign Tax Credit Comp Wks. Next year's TT should pick it up from there.

 

[Midpack]

I’ve used TurboTax for years and not had any issue with the carry forward.

+1, same here, and TT shows our running history.

 

[audreyh1]

I’ve used TurboTax for years and not had any issue with the carry forward.

I did not see where there was a carry forward for foreign tax credit.

I have used FTC carryover and carryback with TT, with no problems. Look for the Foreign Tax Credit Comp Wks. Next year's TT should pick it up from there.

Got it - thanks!

 

[audreyh1]

OK - I did finally locate the FTC carryover. Apparently our taxes weren’t high enough to take the full credit this year. The extra is indeed being carried forward to 2021.

Thanks for all the help!