As a newbie to the Form 1116 jungle, I have the following question. A person's tax is zero, but there are enough foreign taxes so that form 1116 shows that there could have been a credit, and the person wants to carry the credit forward.
Should he fill out a zero-amount schedule 3 and enclose it with his 1116 when the taxes are filed?
Did you fully fill out the Form 1116?
This is my general understanding of the Form 1116:
*Conceptually*, the foreign tax credit you will get in a year depends on the amount of U.S. tax you paid on the foreign dividend income. If you paid $0 U.S. tax this year, that would mean you also paid $0 US tax on the foreign dividend. So whatever foreign tax was withheld would be carry forward.Have something to add? Share your thoughts — no account required.
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