Claiming credit from a foreign income tax credit carryover Hello,
I received foreign income in 2015, but not in 2016. In the 2015 return I was able to credit a substantial portion of the taxes paid, but a lot was carried over to this year. I am now filing the 2016 forms, and I don't seem to get any credit.
When I fill in part III of 1116, Line 9 is zero and 10 is my substantial carryover from last year's carryover worksheet. Line 15 and 17 are zero because I did not receive any foreign income in 2016. Line 18 is my US 2016 income .
But then, line 19 lets me compute the maximum credit as a the % of foreign earnings to total earnings (line 17/line 18), but I did not get any foreign earnings in 2016, therefore line 19 is 0% and I cannot get any credit from the carryover.
This seems absurd. I assume I am not interpreting the line items correctly but I do not have a clue. |