Question

Must I carryback a foreign tax credit of $150 to 2023 if I had no foreign income in that year but had paid $400 in foreign taxes in my mutual funds?

Forum|Forum|1 year ago
February 14, 2025
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You are not required to carry back the $150 foreign tax credit to 2023 if you had no foreign income in that year. Instead, you can choose to carry it forward for up to 10 years. However, you do have the option to carry it back for one year if you prefer

For more detailed guidance, you can refer to the IRS page on Foreign Tax Credit ( scroll to carryover) and IRS Public 414 page 3.