Enter the unused foreign taxes in the separate category from another tax year that are eligible to be carried forward to or back to 2012.
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Thank you for responding!
Indeed, I have to file form 1116 every year whilst living overseas. I was wondering if I had to declare a Line 10 number from a previous year or not...
Copy pasting the form 1116 instructions from page 16 isn't really helpful. That's what I've already read of course which is why I asked using that example to fit my particular scenario. The form 1116 instructions are ambiguous, especially when read in conjunction with publication 514 on foreign tax credits.
i.e. in pub 514 under "Carryback and Carryover" Example 2 says
"...You cannot carry the $200 of unused foreign tax from 2007 to 2008 or 2009 because you have no excess limit in either of those years..."
So that's why I said above
"e.g. say in 2009, 2010, 2011, 2012 I have $1000 excess foreign taxes each year to carry forward. I can’t apply these until 2013 when I don’t have an excess of foreign taxes.So in my 2013 form 1116 on Line 10, I would apply the $4000 foreign taxes carried forward (note there was no foreign income in 2008, so no carryback).But… in the intervening years like 2010, 2011, 2012 would I need to declare the accumulating excess foreign taxes on Line 10 of form 1116 for all those years too? i.e. $1000 in 2010, $2000 in 2011, $3000 in 2012?"
Can you please have another look at this in the context of the example and pub 514's Example 2 under Carryback and Carryover?
Hello sorry to comment again, but I think I'm having second thoughts about this answer and I may have misunderstood and convinced you to agree with me
For example the 2012 pub 514 page 32 has a
1) line 10 carry over of $200
2) line 14 total amount of foreign taxes of $8,916
3) line 21 maximum credit amount of $7,219
So I think the IRS does want us to keep a running tab of Carry back / Carry Over for line 10, but also to Declare that in line 10 each year not leave line 10 blank even if I'm already over the maximum credit amount...
Just Answer has some other answers relevant e.g. http://www.justanswer.com/tax/6hbil-irs-form-1116-line-10-constitute-detailed.html or http://www.justanswer.com/tax/4qzvx-filling-form-1116-unclear-calculate.html in case somebody else is reading this :)...