The U.S. IRS has released an international practice unit on FTC Carryback and Carryover for individuals. The process overview of the practice unit includes the following:
A taxpayer who pays qualifying income taxes to a foreign country on income earned from abroad may claim those taxes as a deduction or a foreign tax credit (FTC) to mitigate the effect of double taxation. IRC 901. There is a limit on the FTC a taxpayer can take each year. The amount of a taxpayer's FTC is calculated as the …