# Carryforward tax form1116



## crisvic (Jan 25, 2020)

Good afternoon...For 2019, In form 1116 (supporting schedule) I,ll have a total of $6586 of unused tax carryforward. 
2016 Foreign tax 2883. Tax credit 705. Carryover 2178
2017 " 2858 " 733 " 2125
2018 " 3011 " 728 " 2283
2019 " 2995 " 725 "
I figure i,ll owe around 500$ in taxes this year. How could I use the tax carryforward to offset or reduce the 500$ payment? Never did this before.....thanks.

another question. The supporting schedules (form 1116) used to have two sections...one for REGULAR TAX...and another one for ALTERNATIVE MINIMUM TAX. 
Is the ALTERNATIVE MINIMUM TAX section still required?..Appreciate your help thanks


----------



## Moulard (Feb 3, 2017)

Assuming you aren't reducing due to use of the FEIE the tax paid this year ends up on line 9 
All of your carryover tax credits are put on line 10 to give you a total amount of foreign taxes available for credit on line 14. 

If you end up having to utilize some of the carryover (i.e. this years tax is more than the foreign tax paid for this year) basically all that happens is the carryover amount for next year is reduced.

Remember that foreign tax credits can only be used on foreign sourced income, (unless there is an income treaty term that allows US sourced income to be treated as Foreign sourced) so if that $500 of tax is due to US sourced income, then you will find that FTC will not help.

On the second question.

When you file Form 1116 you must also complete form 6251 - Alternative Minimum Tax.

For most mortal humans it is pretty easy... your AMT taxable income is likely to be your gross income before deductions. You then apply an exemption.

If the exemption is smaller than than your gross income, then you have to calculate the AMT Tax and calculate foreign tax credits against AMT... hence the AMT version.

Does that make sense? I am a bit rushed this morning, if it isn't I will try to provide a better explanation tonight.


----------



## crisvic (Jan 25, 2020)

*Carryover statement*

1- U.S. Social Security pension 9636$. French Social Security Pension 15800$ (Passive categ income)


2-My former CPA would have done it like this......As far as I know form 6251 was not used??

Regular tax.

2016---foreign tax 2883---Utilized 705---Carryover 2178
2017---foreign tax 2858---Utilized 733---Carryover 2125
2018---foreign tax 3011---Utilized 728---Carryover 2283
Carryover to 2019 6586


Alternative Minimum Tax

2016--foreign tax 2883---Utilized 0.---Carryover 2883
2017--foreign tax 2858---Utilized 0.---Carryover 2858
2018--foreign tax 3011---Utilized 0.---Carryover 3011
Carryover to 2019 8752 

Would that be ok?..Thanks


----------



## Moulard (Feb 3, 2017)

Yep. You have got the idea.

If you use Foreign Tax Credits you must use complete the AMT form to determine if AMT is payable.

But so long as you don't meet any of the filing requirements, you don't have to actually submit the forms - its probably why it wasn't included in any prior filings by your former CPA.


----------

