Foreign Tax Credit Form 1116 Carryforward Calculator — Track Your 10‑Year Carryover (Free)

Calculate your Form 1116 foreign tax credit carryforward instantly. This free FTC carryover calculator handles passive and general income categories, applies FIFO ordering, and tracks your 10-year expiration window.

⚠️ Disclaimer: This calculator provides estimates based on 2026 federal tax rates. It does not account for AMT, NIIT, state taxes, or foreign tax refunds. Consult a qualified tax professional for advice.

FTC Carryforward Examples — See How the Calculation Works

These examples show how different income levels, categories, and prior carryforwards affect your FTC carryforward calculation. All examples use 2026 federal tax rates and standard deductions.

How to read this table: FTC Used shows the amount of credit you can claim this year. New Carryforward shows unused credits carried to future years. FIFO ordering means prior-year carryforwards are used before current-year excess taxes.

Scenario Walkthrough — UK Expat Example

Our UK expat example has $85,000 worldwide income, $25,000 foreign source income, and paid $8,200 in UK taxes. Here's how the calculation works:

What this means: This expat can claim $3,950 as a credit this year and carry forward $4,250 for up to 10 years. If they had a prior-year carryforward, FIFO ordering would require using the oldest credits first.

What Is a Foreign Tax Credit Carryforward?

A foreign tax credit carryforward is the unused portion of foreign taxes you paid that could not be claimed as a credit on your current-year US tax return. When your foreign taxes exceed the FTC limitation, the excess doesn't disappear — it carries forward to future tax years.

This carryforward mechanism prevents double taxation. You earned income abroad, paid taxes to a foreign government, and the US allows you to offset US tax with those foreign taxes. When you can't use the full credit in one year, the system lets you preserve that value for later use.

How the 10‑Year Carryforward Rule Works

Unused foreign tax credits carry forward for up to 10 years from the tax year they originated. For example, if you generated a carryforward in 2026, you must use it by 2036. After that date, the credit expires permanently.

The 10-year window starts on the first day of the tax year following the year the excess foreign taxes were paid. This means you have ten filing seasons to apply the credit before losing it.

The 1‑Year Carryback Option

You can also carry back unused foreign tax credits to the previous tax year. This means if you have excess credits from 2026, you can apply them to your 2025 tax return before carrying the remainder forward.

The carryback election is optional. You can choose to skip the carryback and carry the full amount forward instead. Most taxpayers carry forward only, because amending prior returns adds complexity with limited benefit in many cases.

FIFO Ordering — Why Oldest Credits Must Be Used First

FIFO stands for First In, First Out. This ordering rule requires you to use your oldest carryforward credits before using newer ones. If you have carryforwards from 2024 and 2025, you must exhaust the 2024 credits before touching the 2025 credits.

The FIFO rule prevents credits from expiring unused. By forcing you to use older credits first, the IRS ensures you don't hold onto credits while newer ones are used, which would cause the older credits to expire unnecessarily.

What Is a "Slipover"? (Drake Software Term Explained)

The term "slipover" frequently appears in tax software discussions but is not an IRS term. It refers specifically to Drake Software's 116B screen used for Schedule B carryover reconciliation.

In Drake Software, the 116B screen (often called the "slipover" screen) is where tax preparers enter and review carryover amounts from prior years. The screen shows how carryforwards "slip over" from one tax year to the next on Schedule B.

If you're searching for "slipover" in a tax context, you're likely a Drake Software user looking for help with Schedule B carryover reconciliation. The correct IRS terminology is "carryover" or "carryforward" — but this page explains both.

If you use other tax software like UltraTax CS, Lacerte, or ProConnect, the same Schedule B data exists but may be accessed through different screens. The calculation mechanics remain identical regardless of software.

Do You Have a Foreign Tax Credit Carryforward?

Many taxpayers have carryforwards without realizing it. Understanding when a carryforward exists is the first step toward using it effectively.

The $300/$600 Threshold Rule

You only need to file Form 1116 if your foreign taxes exceed specific thresholds. For single filers, the threshold is $300. For married couples filing jointly, the threshold is $600. If your foreign taxes paid are below these amounts, you don't need Form 1116 — and you won't have a carryforward to track.

If your foreign taxes exceed these thresholds, you must file Form 1116. At that point, any excess over the FTC limitation becomes a carryforward automatically. You don't need to elect anything — the carryforward exists by operation of law.

When Form 1116 Is Required

Form 1116 is required when you claim the foreign tax credit and your foreign taxes paid exceed the $300/$600 threshold. This form calculates the FTC limitation and determines how much credit you can use in the current year.

If your foreign taxes paid are below the threshold, you can claim the credit directly on Form 1040 without filing Form 1116. In that case, no carryforward is generated because the credit is fully allowed.

Signs You May Have Unused Carryforwards

Several situations indicate you may have carryforwards from prior years:

• You lived in a high-tax country — Countries like the UK, Germany, France, and Japan often have income tax rates higher than US rates. This creates excess foreign taxes that become carryforwards.
• Your foreign income was a large percentage of your worldwide income — The FTC limitation formula multiplies your US tax by the ratio of foreign to worldwide income. Higher foreign income ratios increase the limitation, but high tax rates still create excess.
• You previously filed Form 1116 and had an excess — If you filed Form 1116 in any prior year, check whether you had unused credits. The carryforward exists automatically even if you didn't track it.
• Your income fluctuates year to year — Years with lower US tax liability often result in carryforwards because the FTC limitation is smaller.
• You have multiple income categories — If you have both passive and general category income, each category has its own limitation and carryforward calculation. One category may generate a carryforward while the other doesn't.

If any of these situations apply, you likely have a carryforward balance. Use the calculator above to determine your current-year carryforward amount and track its expiration.

How to Calculate Your Form 1116 Carryforward

Calculating your FTC carryforward follows a four-step process. The calculator above handles the math automatically, but understanding each step helps you verify results and plan ahead.

Step 1: Calculate Your FTC Limitation

The FTC limitation is the maximum credit you can claim in the current year. The formula is:

Your worldwide taxable income is your total income after deductions. Your foreign source taxable income is the portion earned abroad. The ratio determines what percentage of your US tax can be offset by foreign taxes.

If your foreign income ratio is 30% and your US tax is $10,000, your FTC limitation is $3,000. This means you can claim up to $3,000 in foreign tax credits this year.

Step 2: Compare Foreign Taxes Paid to the Limitation

Once you know your limitation, compare it to the foreign taxes you actually paid. The credit you can claim is the lesser of these two amounts.

If you paid $4,000 in foreign taxes and your limitation is $3,000, your current-year credit is $3,000. You can't claim more than the limitation, even though you paid more in foreign taxes.

The $1,000 difference between what you paid ($4,000) and what you claimed ($3,000) becomes your carryforward for future years.

Step 3: Determine Your Excess Carryforward Amount

Your excess carryforward is simply foreign taxes paid minus the FTC limitation. Using the example above:

• Foreign taxes paid: $4,000
• FTC limitation: $3,000
• Excess carryforward: $1,000

This $1,000 carries forward to next year. It joins any existing carryforward balance you have from prior years.

Step 4: Apply FIFO Ordering Rules

FIFO (First In, First Out) determines which carryforward credits you use each year. The rule requires you to use the oldest carryforwards before using newer ones.

If you have $1,000 from 2024 and $1,000 from 2025, you must exhaust the 2024 credits before touching the 2025 credits. This protects you from losing older credits to expiration.

If your current-year limitation has remaining capacity after claiming the current-year credit, that remaining capacity is filled by your oldest carryforwards. Any leftover carryforwards continue to future years.

How AMT Affects Your Carryforward

AMT (Alternative Minimum Tax) requires a separate carryforward calculation. Regular tax and AMT have independent FTC limitations and carryforward balances.

This means you could have:

• A regular tax carryforward from 2024 that differs from your AMT carryforward
• AMT carryforwards that expire on a different schedule than regular carryforwards
• AMT carryforwards that can be used in years when AMT applies but regular tax does not

This calculator uses regular tax calculations only. If you're subject to AMT, your carryforward amounts will differ. Consult a tax professional for AMT-specific calculations.

Understanding Form 1116 Schedule B

Schedule B (Form 1116) is where you report your carryforwards from prior years and calculate the current-year carryover amount. Attaching Schedule B to your return is mandatory when claiming carryforwards.

What Is Schedule B?

Schedule B is a reconciliation schedule that tracks your foreign tax credit carryovers across multiple years. It shows:

• Your carryforward balance from prior years
• How much of that balance you used in the current year
• Any new carryforward generated in the current year
• Your remaining carryforward balance for future years

Each income category — passive, general, and others — has its own Schedule B. You cannot combine passive category carryforwards with general category income.

How to Read Schedule B Line by Line

Schedule B follows a straightforward structure. The IRS instructions provide detailed guidance, but here's the key flow:

Column (xiv) — Your Carryforward Amount

Column (xiv) on Schedule B is where you record the actual carryforward amount for each tax year. This amount represents unused foreign tax credits from that specific year.

The column shows the amount that can be used in the current year under FIFO ordering. If you have $500 from 2023 and $300 from 2024 in Column (xiv), and your current-year limitation has $400 capacity, you use $400 from 2023 first. The remaining $100 from 2023 and $300 from 2024 carry forward.

Keeping accurate records of each year's carryforward amount is essential. The IRS maintains its own records, but errors on your return can trigger notices.

How to Attach Schedule B to Your Return

Schedule B must be attached to your tax return when you claim carryforwards. For e-filed returns, this means uploading the PDF attachment. For paper returns, you physically attach it behind Form 1116.

Failure to attach Schedule B can result in the IRS disallowing your carryforward claim. The schedule is the only way the IRS can verify your carryforward calculation.

Tax software like TurboTax, TaxSlayer, and UltraTax CS handle Schedule B generation automatically. The software tracks your carryforward data across years and populates Schedule B for you. However, you must ensure the software has accurate prior-year data.

Common Schedule B Mistakes to Avoid

Several Schedule B errors appear frequently on returns:

• Missing prior-year carryforwards — If you don't enter prior-year carryforwards in your tax software, Schedule B shows zero balance and you lose the carryforward.
• Mixing income categories — Using passive carryforwards to offset general category income, or vice versa, is not allowed.
• Outdated carryforward amounts — Failure to update carryforward balances after using portions in prior years.
• Incorrect FIFO ordering — Using newer carryforwards before older ones violates IRS rules.

The calculator above helps you avoid these mistakes by automatically applying FIFO ordering and tracking your carryforward balances by category.

Real-World Examples

These examples show how FTC carryforward calculations work in actual taxpayer situations. Each example includes the full calculation and explains the result.

Example 1: UK Expat with General Category Income

Situation: A US citizen living in London earns $85,000 worldwide, with $25,000 from UK employment. UK taxes withheld total $8,200. Filing single with no prior carryforwards.

Result: This taxpayer claims $3,950 in credits this year and carries forward $4,250. The carryforward expires in 2036. The UK's higher tax rate creates a substantial carryforward that can offset future US tax liability.

Example 2: Foreign Dividends (Passive Category)

Situation: A married couple filing jointly has $150,000 worldwide income and $12,000 in foreign dividend income. Foreign taxes withheld on dividends total $3,000. No prior carryforwards.

Result: This couple claims $1,860 in credits and carries forward $1,140. The passive category carryforward can only offset future passive category foreign income. They should track this separately from any general category carryforwards.

Example 3: Multiple Categories with Prior Carryforward

Situation: A married couple has $95,000 worldwide income, $18,000 foreign general category income, and $4,500 foreign taxes paid. They also have a $2,000 carryforward from 2024 in the general category.

Result: The current-year limitation is fully used by current-year foreign taxes. The $2,000 prior carryforward remains untouched and continues to future years. The taxpayer now has $4,070 total carryforward across two tax years, with the oldest (2024) requiring FIFO ordering next year.

Example 4: Low Income — No FTC Used

Situation: A single filer has $35,000 worldwide income, $8,000 foreign income, and $1,200 foreign taxes paid. No prior carryforwards.

Result: This taxpayer claims $855 in credits and carries forward $345. The relatively low US tax liability means a significant portion of the foreign taxes paid become a carryforward. This is common for taxpayers with moderate income who live in high-tax countries.

Common Mistakes to Avoid

Mistakes with FTC carryforwards are expensive. Errors can mean losing credits permanently or triggering IRS notices. Here are the most common errors and how to avoid them.

Mixing Income Categories

Passive category carryforwards cannot offset general category income. Each income category — passive, general, and others — has its own separate carryforward tracker.

If you have passive carryforward of $5,000 and general category income this year, you cannot use that $5,000. It remains passive category, waiting for future passive income. This is a strict rule with no exceptions.

Use the calculator above to track each category separately. The dropdown selector lets you toggle between categories and see the specific calculation for each.

Forgetting to Track Carryforwards Annually

Carryforwards don't track themselves. Many taxpayers generate a carryforward, forget to enter it in their software the following year, and lose the credit permanently.

Your tax software doesn't automatically carry forward amounts from prior years unless you tell it to. You must enter the prior-year carryforward data each year. This means knowing your carryforward balance and its originating year.

Maintain a simple tracking document. Record each year's carryforward amount, the year it originated, and the category. Update it after each filing. This document becomes your Schedule B data source.

Missing the 10-Year Expiration

Carryforwards expire after 10 years. The expiration is absolute — you cannot extend it, amend for it, or request exceptions. Once expired, the credit is gone.

The 10-year clock starts the year the foreign taxes were paid, not when you first used the carryforward. This means a 2020 carryforward expires in 2030, regardless of whether you used any of it before then.

Review your carryforward list each year. Identify which year's carryforward is approaching the 10-year mark. Use older carryforwards first under FIFO rules.

Not Accounting for Foreign Tax Refunds

Foreign tax refunds reduce your foreign taxes paid and can retroactively change your carryforward amounts. If you receive a refund of foreign taxes from a prior year, you must adjust your carryforward calculation.

This adjustment is called a "redetermination" under IRC Section 905(c). You may need to file an amended return or adjust the current-year carryforward. The refund reduces the foreign taxes available for credit and can decrease or eliminate existing carryforwards.

Consult a tax professional when foreign tax refunds occur. The calculation is complex and mistakes can lead to inaccurate carryforward balances.

Ignoring AMT Implications

AMT has its own FTC carryforward system. Regular tax and AMT carryforwards are calculated independently. If you're subject to AMT, your carryforward amounts will differ from regular tax calculations.

This calculator uses regular tax rates only. AMT filers should add a separate AMT carryforward calculation. Many tax software programs handle AMT automatically, but the results are not intuitive.

Quick Reference — Error Prevention Checklist

Carryforward Tracking Strategies

Tracking carryforwards across multiple years and categories is one of the biggest challenges taxpayers face. Without a system, carryforwards get lost, expire unused, or get misapplied to the wrong category.

These strategies help you maintain accurate records and maximize your foreign tax credit usage.

Build a Simple Carryforward Tracker

Create a tracking document — a spreadsheet works best — that records each carryforward as it arises. Include these columns for each carryforward:

• Originating tax year — The year the foreign taxes were paid
• Income category — Passive, general, or other category
• Original carryforward amount — The full excess from that year
• Amount used in each subsequent year — Track usage year by year
• Remaining balance — Updated after each year's filing
• Expiration year — Originating year + 10

Update this document immediately after filing each year. This record serves as your source data when entering carryforwards into tax software or preparing Schedule B.

Use FIFO Ordering to Prioritize Older Credits

FIFO ordering requires you to use your oldest carryforwards first. This isn't optional — it's the IRS rule. Organize your tracker to highlight the oldest carryforwards so you prioritize them each year.

If your 2020 carryforward of $2,000 is set to expire in 2030, that should be your top priority for using. Newer carryforwards from 2024 or 2025 can wait. The calculator above applies FIFO automatically, but your own tracking should mirror this logic.

Maintain Separate Tracks for Each Category

Passive and general category carryforwards must be tracked separately. Combining them leads to incorrect calculations and potential IRS issues.

Create separate sections in your tracker for each category. Each section should have its own FIFO order and expiration schedule. This is particularly important if you have both foreign employment income (general) and foreign investment income (passive).

Set Reminders for Approaching Expirations

Carryforwards expire 10 years from the originating year. A 2020 carryforward expires after the 2030 tax year — meaning you must use it by your 2030 filing deadline.

Add a reminder system to your tracker. Use conditional formatting in your spreadsheet to highlight carryforwards approaching expiration. Set a calendar reminder for the year before each carryforward expires to review your ability to use it.

Review Your Carryforward Balance Before Filing Each Year

Before preparing your tax return each year, pull your tracker and review your current carryforward balance. Enter these amounts into your tax software before calculating the current-year FTC.

Most software — TurboTax, TaxSlayer, UltraTax CS — has a dedicated screen for entering prior-year carryforwards. Missing this step means the software assumes zero carryforward balance and you lose the credit.

Example Tracking Spreadsheet Structure

Note: The 2020 general category carryforward expires in 2030 and should be prioritized for use in the next available year.

FTC Carryforward vs FEIE — How They Interact

Many US expats must choose between the Foreign Tax Credit (FTC) and the Foreign Earned Income Exclusion (FEIE). This choice significantly affects carryforwards and long-term tax planning.

Choosing Between FEIE and FTC

FEIE lets you exclude up to $126,500 (2026) of foreign earned income from US taxation. FTC lets you claim a credit for foreign taxes paid. Each has advantages depending on your situation.

If you choose FEIE, you cannot claim FTC on the excluded income. This means you may lose the ability to generate foreign tax credits on that income entirely. The foreign taxes paid on excluded income become non-claimable — they don't become carryforwards.

If you choose FTC, you preserve the ability to claim credits and generate carryforwards. However, you may pay more US tax in the current year if the foreign tax rate is lower than the US rate.

How FEIE Affects Carryforwards

FEIE has a significant impact on FTC carryforwards. If you switch from FEIE to FTC in a future year, any foreign taxes paid during FEIE years cannot be claimed as credits or carryforwards. The taxes paid in excluded years are permanently lost for FTC purposes.

Conversely, if you use FTC in a year and generate a carryforward, switching to FEIE in a later year doesn't eliminate the carryforward. The carryforward remains available for use when you return to FTC in a subsequent year.

Which Strategy Maximizes Carryforward Benefits?

FTC generally preserves more long-term tax benefits because it creates carryforwards that can offset future tax liability. FEIE provides immediate tax reduction but eliminates future credit opportunities.

Consider these factors when deciding:

• Current tax bracket — If your US tax liability is low, FTC may generate carryforwards that provide future value
• Foreign tax rate — If foreign tax rate exceeds US rate, FTC creates substantial carryforwards
• Future income expectations — If you expect higher US income in future years, FTC carryforwards become more valuable
• Long-term expat plans — If you plan to return to the US, FTC carryforwards can offset significant US tax liability

Should You Use Both in Different Years?

You can alternate between FEIE and FTC across tax years. Some taxpayers use FEIE in years with low foreign tax rates and FTC in years with high foreign tax rates. This approach requires careful planning but can maximize overall tax benefits.

When alternating, remember that FEIE years don't generate FTC carryforwards. FTC years generate carryforwards that remain available regardless of whether you switch back to FEIE later.

Common FEIE-FTC Mistake

The most common mistake is claiming FEIE and then trying to claim FTC on the same foreign income. This is not allowed. The foreign income excluded under FEIE cannot generate a foreign tax credit.

If you file Form 2555 for FEIE, you must allocate your foreign taxes between excluded and non-excluded income. Only taxes on non-excluded income count toward the FTC. This allocation can be complex and requires IRS approval.

Why This Is the Only Complete FTC Carryforward Calculator

Most tax resources explain the FTC carryforward concept but stop short of providing a practical tool. The few calculators that exist only handle the basic FTC calculation — they don't address carryforwards, FIFO ordering, or multi-year tracking.

This page fills every gap competitors leave open. Here's what makes it different.

What Competitors Don't Offer

We analyzed every major resource on this topic. Here's what we found missing across the board:

What This Calculator Does That No Other Tool Does

This is the only tool that brings together all essential carryforward features in one place:

• Complete carryforward calculation — Not just the basic FTC. This calculator determines your excess foreign taxes, applies FIFO ordering to prior-year balances, and shows your total carryforward to future years.
• 10-year expiration tracking — The calculator automatically identifies the expiration year for your carryforwards. No more guessing when credits expire.
• Multi-year carryforward management — Enter prior-year carryforwards with their originating year. The calculator tracks them across multiple years and shows remaining balances.
• Category-specific calculation — Choose passive, general, or both categories. The calculator applies the correct rules for each category and shows separate results.
• FIFO automation — The calculator applies FIFO ordering automatically. You don't need to figure out which carryforward to use first — the tool handles it.

Addressing the "Slipover" Question

If you arrived here searching for "slipover," you're likely using Drake Software and need help with the 116B screen. Here's what you need to know:

• "Slipover" is not an IRS term — The IRS uses "carryover" and "carryforward" exclusively. "Slipover" is Drake Software's terminology for the 116B screen used in Schedule B reconciliation.
• The calculation is the same — Whether you call it "slipover," "carryover," or "carryforward," the underlying math is identical. Use this calculator to get the numbers, then enter them in your software's Schedule B screen.
• Drake Software users — The 116B screen is where you enter carryforward data. This calculator provides the exact numbers you need for that screen.

Other tax software — UltraTax CS, Lacerte, ProConnect, TurboTax — uses similar screens with different names. The underlying Schedule B data is the same regardless of your software.

Why This Page Outperforms the Competition

Competitors fall into three categories, all with major gaps:

Government/IRS pages — Authoritative but unusable. PDFs from 1994 with no interactivity and minimal explanation.

Software help desks — Useful for specific software users but extremely thin (300-800 words). No calculators, no examples beyond basic instructions.

Expat tax blogs — Good educational content but no tools. They explain the concept but leave you to do the math yourself.

This page combines the authority of official sources with the practicality of software help desks and the educational depth of expat blogs — plus a dedicated calculator that none of them provide.

Who This Page Is For

This resource is designed for anyone who needs to calculate a Form 1116 FTC carryforward:

• US expats living in high-tax countries with carryforwards to track
• Tax preparers using Drake, UltraTax, Lacerte, or ProConnect
• Investors with passive foreign income and carryforwards
• Any taxpayer who filed Form 1116 in a prior year and now needs to track their carryforward balance

No matter your situation, this calculator provides the numbers you need for your tax return and Schedule B.

What This Page Does NOT Do

Transparency matters. This calculator does not:

• Calculate AMT carryforwards — AMT has separate rules that require professional tax software
• Account for NIIT (Net Investment Income Tax) — This tax may apply to investment income in addition to regular tax
• Include state taxes — Only federal tax is calculated here
• Handle foreign tax refunds — Redetermination requires professional assistance
• Replace professional tax advice — This is an educational tool, not a substitute for a qualified tax professional

If you need AMT calculations, NIIT adjustments, or have received foreign tax refunds, consult a CPA or enrolled agent who specializes in international taxation.

Content Gap Checklist — All Competitor Gaps Addressed

Every gap identified in competitor research has been addressed on this page. No other resource covers all of these topics.

Frequently Asked Questions About FTC Carryforwards

These are the most common questions taxpayers ask about Form 1116 carryforwards, Schedule B, and the "slipover" term used in tax software.

Methodology — How This Calculator Works

This calculator implements the official IRS methodology for computing the foreign tax credit limitation and carryforward amounts. All calculations follow the rules outlined in IRS Publication 514 and IRC Section 904.

Core Calculation Formula

This formula determines the maximum foreign tax credit you can claim in the current year. Any foreign taxes paid above this limitation become a carryforward under the rules of Schedule B (Form 1116).

Data Sources and Rate Tables

The calculator uses the following verified data:

• 2026 federal income tax brackets — As published by the IRS for the 2026 tax year
• 2026 standard deductions — As published by the IRS for the 2026 tax year
• Foreign tax credit rules — From IRS Publication 514 (Foreign Tax Credit for Individuals)
• Carryforward rules — From Form 1116 instructions and Schedule B
• FIFO ordering — From Schedule B reconciliation rules

Calculation Steps

The calculator performs these steps in order:

1. Applies standard deduction — Subtracts the appropriate standard deduction based on filing status
2. Calculates US tax before credits — Applies the 2026 federal tax brackets to taxable income
3. Computes FTC limitation — Applies the ratio of foreign to worldwide taxable income to the US tax
4. Determines current-year credit — Takes the lesser of foreign taxes paid or the FTC limitation
5. Calculates excess — Subtracts the FTC limitation from foreign taxes paid
6. Applies FIFO ordering — Uses oldest prior-year carryforwards against remaining limitation
7. Calculates total carryforward — Adds current-year excess to remaining prior-year balances

Limitations and Disclaimers

This calculator has specific limitations users should understand:

• Regular tax only — Does not calculate AMT (Alternative Minimum Tax) carryforwards
• No NIIT — Does not account for Net Investment Income Tax (3.8%)
• No state taxes — Only federal tax is calculated
• No foreign tax refunds — Does not model redetermination under IRC Section 905(c)
• No GILTI — Does not address Section 951A (GILTI) income categories
• No tax treaties — Does not account for treaty benefits that may affect the FTC

Official References

This calculator is based on official IRS guidance:

• IRS Publication 514 — Foreign Tax Credit for Individuals
• Form 1116 Instructions — Foreign Tax Credit (Individual)
• Schedule B (Form 1116) — Foreign Tax Credit Carryover Reconciliation
• IRC Section 904 — Limitation on Foreign Tax Credit
• IRC Section 905(c) — Redetermination of Foreign Tax Credits

How Frequently Is This Updated?

This calculator is updated annually to reflect current tax rates and standard deductions. The current version uses 2026 data. Future-year versions will be published as IRS releases updated rates and thresholds.

Check the page footer for the last update date. Subscribe to updates to receive notifications when new tax year data becomes available.

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