- posted 10 years ago
Every year I have $1,000 in foreign taxes on $5,000 of foreign
income. I have little other income and large deductions, so haven't
paid any taxes the last couple years; and haven't gotten any credits.
I hope to have enough income to pay taxes in a year or two and might
use the credits then.
The way I read 1116, I can carry the for foreign taxes forward 10
years, but not the foreign income; so it would very quickly get to the
point where there was no point to carrying them forward because in any
year I might actually pay enough taxes to use the credit, I wouldn't
have enough foreign income to support them. (5 years hence, I would
have $5,000 in foreign taxes (with carry forward), but only $5,000 in
income, so I wouldn't get much) Is that correct, or am I missing
I did have enough income in 2007 to carry the credits from 2008 back
and get benefit from them. The problem is that I already amended my
2007 return (my previous accountant made a bunch of serious mistakes)
before I did my 2008 return. My new account doubts it is cost
effective to do it again. Is that more to it than filing a revised
1040 an a revised 1116, and getting a $1,000 refund? That shouldn't
be expensive. His first amended return was 4" thick, but this
amendment is rather simpler. Am I underestimating the challenge? Can
you amend a 2007 return twice?