Question
Form 1116 carryforward worksheet not reducing carryover
My client has unused foreign tax carryforward from 2014. They still have foreign income but no new foreign taxes. The carryforward should be reducing on the worksheet but the columns won't work with negative numbers. I am amending the 2023 and 2024 as no foreign tax credit was taken in those years, and 2024 is the last year as 2024 is the 10th year. If I use the carryforward as the amount of foreign tax, then the total carryforward in the last column is way too large.
