Hi all:
The question is whether there are conditions on using Foreign Tax Credit carryover. For example, if John(U.S. Citizen) worked in England in 2007, and paid $40k tax to UK, but his FTC limit for 2007 is $30K. Thus John has 10K FTC for carryover.
To use the carryover in 2008, does John need to be staying in UK in 2008 ? If he ended his expat assignment by the end of 2007, can he still use any FTC carryover ? In short, does he need foreign earned income in 2008 to use FTC carryover from 2007 ?
(My guess is he needs foreign earned income in 2008, because otherwise his 2008 FTC limit will be zero).
THanks in advance for answering.
The question is whether there are conditions on using Foreign Tax Credit carryover. For example, if John(U.S. Citizen) worked in England in 2007, and paid $40k tax to UK, but his FTC limit for 2007 is $30K. Thus John has 10K FTC for carryover.
To use the carryover in 2008, does John need to be staying in UK in 2008 ? If he ended his expat assignment by the end of 2007, can he still use any FTC carryover ? In short, does he need foreign earned income in 2008 to use FTC carryover from 2007 ?
(My guess is he needs foreign earned income in 2008, because otherwise his 2008 FTC limit will be zero).
THanks in advance for answering.