My foreign taxes are under the simplified limit, but I also have an unused carryover. Can I skip Form 1116 this year?
I am a U.S. taxpayer in the UK and my current-year passive foreign taxes are low enough that I might qualify for the simplified credit without Form 1116. The wrinkle is that I still have an unused foreign tax credit carryover from an earlier year. I do not want to lose it by using the simplified route just because the current-year numbers are small.
If the no-Form-1116 option blocks carrybacks or carryforwards, I need to know that before filing. The convenience is not worth it if it damages the prior-year carryover position.
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