Referencing North Carolina income tax form D-400TC, Part 1 limits the amount of foreign tax credit (FTC) I can take (line 7a is considerably smaller than line 6).
I am wondering if it is possible, as with the federal FTC, to carry over the unused amount. Part 1 says nothing about it. However, the line 7a amount is carried to Part 3, where it is added to “Tax credits carried over from previous year”. But nowhere in the instructions for this form, or at the NC DOR website, can I find any discussion of what qualifies as a carried-over tax credit, in particular, does the unused FTC count ?
You know, I was thinking that we’re rather fortunate here in NC, since not all states provide for FTC. And to some extent, we’re actually receiving two “refunds” for the foreign tax deducted from mutual fund dividends.