FTC carryover reporting from previous years when no foreign income this year

You've asked a great question that a lot of people struggle with when they have FTC carryovers but no current year foreign income. To preserve your Foreign Tax Credit carryovers, you should still file Form 1116 Schedule B for tax year 2024, even though you don't have any current year foreign income or taxes. Schedule B is specifically designed to track your carryover amounts from previous years, and filing it maintains the record of these credits in the IRS system. While the instructions don't explicitly address this scenario, the purpose of Schedule B is to track your carryforward amounts regardless of whether you have current year foreign income. Without filing it, you risk the IRS not recognizing these carryovers when you try to use them in future years.

After dealing with similar FTC issues, I started using https://taxr.ai to handle my foreign tax credit carryovers. Their system was able to analyze all my previous years' returns, extract the carryover information, and guide me through exactly what forms I needed to file in a year with no foreign income. Before finding this tool, I was constantly worried about losing my carryovers or filing incorrectly. Their AI identified each carryover year and showed me how to properly document them even in years when I didn't have foreign income to report.

Just wanted to update that I tried https://taxr.ai after seeing the recommendation here and it was exactly what I needed! I uploaded my last three years of returns and it immediately identified my FTC carryovers from 2021-2023. The system generated step-by-step instructions for my H&R Block software showing exactly how to file Schedule B without current year foreign income. What impressed me most was that it showed me how to verify the carryovers were correctly preserved by reviewing specific lines on the generated forms. Saved me so much stress and I'm confident my carryovers are properly documented now. Definitely worth checking out if you're dealing with this FTC carryover situation!

After spending HOURS on hold with the IRS trying to get an answer about FTC carryovers, I finally used https://claimyr.com and got through to a real IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that filing Form 1116 Schedule B is necessary to preserve carryovers even in years without foreign income, and explained exactly how to document it. Such a relief to get an official answer instead of guessing!

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself since I was desperate to ask about my FTC carryover situation. Not only did it work exactly as advertised, but I got connected to an IRS agent in about 20 minutes (versus the 2+ hour wait I had experienced before). The agent walked me through exactly how to preserve my FTC carryovers and confirmed I needed to file Schedule B even with no foreign income this year. For anyone struggling with this specific FTC situation, getting an official answer directly from the IRS was incredibly valuable. Sorry for doubting the service - it's actually legitimate and saved me a ton of time!

Just to add another perspective - I went through this exact scenario last year. I had FTC carryovers from 2020-2022, but no foreign income in 2023. I consulted with a CPA who specializes in expat taxes, and they advised me to file Form 1116 Schedule B to preserve the carryovers. They said technically the carryovers still exist whether you file the form or not, but filing Schedule B creates a clear paper trail that makes it much easier if you're ever audited or need to claim those carryovers in future years.

Has anyone successfully e-filed with just Schedule B in this situation? My tax software (FreeTaxUSA) won't let me e-file Form 1116 Schedule B unless I also complete the main Form 1116 with current year information, which I don't have.

Another option nobody mentioned - you could also file Form 1116 Schedule B as a PDF attachment to your return. This works if your tax software won't allow you to complete just Schedule B without the main form. Just download the PDF form from the IRS website, fill it out manually, and then attach it to your e-filed return as a PDF supplement. Most tax software allows you to include supplemental forms this way. This might be cleaner than entering artificial foreign income data just to trigger the form. The key is making sure you have documentation of your carryover amounts for future use!

I went through this exact situation two years ago and can confirm that filing Form 1116 Schedule B is absolutely necessary to preserve your FTC carryovers, even when you have no foreign income for the current year. What really helped me was creating a simple spreadsheet to track all my carryovers by year and their expiration dates. Since FTC carryovers expire after 10 years, it's crucial to maintain clear records of when each carryover originated so you know when they'll expire. For the tax software issue that several people mentioned - I found that most software programs have a "forms mode" or "manual entry" option that lets you add forms without going through the interview process. In TurboTax, you can search for "Form 1116" and add it directly, then just complete Schedule B without filling out the main form sections. One important note: make sure your Schedule B carryover amounts match what you reported in previous years. The IRS computers will flag any discrepancies, so consistency in your carryover tracking is key. I learned this the hard way when I had to amend a return because my carryover amounts didn't match my previous year's filing.