Join our newsletter and never miss a FREE update.
  • This field is for validation purposes and should be left unchanged.

I’ve chosen to take a credit for foreign taxes accrued on Form 1116 in the past. Can I instead take a credit for taxes paid in the current year?

If you’re a cash basis taxpayer, you can only take the foreign tax credit in the year you pay the qualified foreign tax unless you elect to claim the foreign tax credit in the year the taxes are accrued. Once you make this election, you can’t switch back to claiming the taxes in the year paid in later years.


Published by
Updated: June 2, 2018

Comment on this FAQ

Your email address will not be published. Required fields are marked *