Join John Adams, world renowned Intl Matchmaker, Monday nights 8:30 EST for Live Webcasts!
And check out Five Reasons why you should attend a FREE AFA Seminar! See locations and dates here.



View Active Topics       View Your Posts       Latest 100 Topics       FAQ Topics       Mobile Friendly Theme


Carrying forward&backward Foreign Tax on US returns

Discuss and talk about any general topic.

Moderators: fschmidt, jamesbond

Post Reply
MrMan
Veteran Poster
Posts: 2407
Joined: July 31st, 2014, 3:52 am

Carrying forward&backward Foreign Tax on US returns

Post by MrMan » June 11th, 2017, 1:21 am

I noticed something this year while working on my taxes. If you pay foreign taxes and you don't use up all the credits for it, you can carry those credits forward.... and backward. That's pretty cool. But it expires after 10 years. If that has been there a long time, there might have been a year in the 1990's when I could have used that and didn't know about it.

Anyway, it's good to know. I'm not sure how the numbers will work out, but if your income isn't high enough to exceed the foreign earned income credit to such an extent that you have to use up the credit for having paid taxes overseas, when you go back to the US, you can deduct what you paid overseas from your US taxes. That's pretty cool.

My foreign paid taxes from years way back when are so far in the past that I can't use those credits anymore.

Contrarian Expatriate
Veteran Poster
Posts: 2284
Joined: December 3rd, 2009, 6:57 am

Re: Carrying forward&backward Foreign Tax on US returns

Post by Contrarian Expatriate » June 11th, 2017, 6:41 am

My understanding is that you cannot carried it forward unless you have foreign income for the year you are claiming it. This is not problem in the initial year, but it could prevent you from claiming the deduction after you have left the country where you paid foreign taxes.

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “General Discussions”