Question

I got a foreign tax credit of $2, but the amt I owed in federal taxes stayed the same after that. Why?

Forum|Forum|1 year ago
April 7, 2025
1 reply
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I thought it would go down by 2 dollars but it stayed the same.

TurboTax Online

More info on this... So i was in the deductions section and ran through the foreign tax questions and ended up with a $2 foreign tax credit. I figured it would reduce my federal tax due by $2, but that stayed the same as before I went with the foreign tax credit. Maybe it was in there already on that assumption that i was going with the standard deduction I guess.

M

Mike9241

did you elect to forgo form 1116 because your FTC was below $300 ($600 if filing jointly). if not, you should. Otherwise, form 1116 must be completed and sometimes, because of the way the FTC is computed on the form you get much less than the actual credit.