I couldn't use all my foreign tax credit this year — can I carry it forward?
My foreign tax was higher than the Form 1116 limitation allowed, so part of my credit went unused. Is that lost, or can I carry it to another year? And how long do I have to use it?
Related Questions
My old U.S. business shut down last year, but the new return still shows a QBI loss carryforward. Is that possible?
I am from India and had a U.S.-connected business that generated a loss in one year, then shut down. In 2026 I have a different business activity and my preparer says the old QBI loss still has to be ...
Can I use First-Time Abatement on my Form 5472 penalty? My CPA says no but I see the FTA program on irs.gov.
I got a $25,000 Form 5472 penalty for one late tax year. My filing history is otherwise clean — no prior penalties. My CPA says First-Time Abatement doesn't apply to Form 5472, but the FTA page on irs...
What are the Form 1116 'baskets', and why might I have to file more than one?
My accountant mentioned I might need more than one Form 1116 because my foreign income falls into different 'baskets'. I have some foreign dividends and also some foreign consulting income through my ...
I paid AMT a few years ago because of timing items. Can Form 8801 help me now even though I owe no AMT this year?
I am from Canada and in a prior year I had AMT because of timing-related items tied to investments and depreciation. This year my return does not seem to create AMT, but my preparer says I may still n...
I moved to the U.S. midyear and became resident by year-end. Can my spouse and I skip the dual-status return and file one full-year joint return instead?
I am originally from Brazil and moved to California in July for a startup role. By year-end I was a U.S. resident for tax purposes, but for the first half of the year I was clearly nonresident and ear...
My wife is a U.S. resident and I am still a nonresident in the UK. Can we really file one joint return if I was never a U.S. resident this year?
I am a UK founder with a Delaware LLC and around $96,000 of foreign consulting income. My wife lives and works in New York and files as a U.S. resident. I stayed nonresident for U.S. tax purposes all ...
Canada taxed income that the U.S. seems to treat as U.S.-source. Is treaty re-sourcing the reason people use a separate Form 1116 basket?
I am a Canadian founder who became a U.S. resident but still has compensation items that Canada continues to tax. My preparer mentioned 'certain income re-sourced by treaty' and said it may require a ...
Our home-country audit changed the final tax bill for 2023. Do we always have to amend the U.S. return, or can Schedule C on Form 1116 handle it?
I am from India and became U.S. resident in 2024, but the issue now is older foreign tax. Our Indian tax advisor finalized a 2023 audit and the final tax is different from what we originally accrued f...
What is NCTI (formerly GILTI) and how is it calculated for tax year 2026?
I own 100% of a controlled foreign corporation (CFC). My prior-year workpapers refer to GILTI and Form 8992, but I have heard the 2026 rules use NCTI. My CFC earned about $300,000 in income and has ab...
I arrived in the U.S. late in 2025 but will clearly meet substantial presence in 2026. Can I use the first-year choice for my LLC salary period?
I am from Brazil and moved to Miami on November 3, 2025. Before that I lived and worked entirely in Sao Paulo. My U.S. LLC started paying me salary after I arrived, and I also had about $42,000 of for...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
