In the U.S. tax law, an excess credit (if the foreign tax rate exceeds the U.S. tax rate)
I.can be carried back and applied against foreign source income of prior years
II.carried forward to be applied against foreign source income in future years

Question

Quizplus · Accepted Answer

An excess foreign tax credit can be carried back for one year and carried forward for up to 10 years to offset U.S. tax liability on foreign source income. Therefore, it could be either option I or II.

In the US Tax Law, an Excess Credit (If the Foreign Tax