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I live in the US. In 2022 I claimed foreign tax credit for the taxes I paid in India. In 2023 I received a tax refund from India with interest added and TDS on the interest deducted. How do I report these on the 2022 Amended US return?

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You file the form 1040-X with the new form 1116 based on the updated numbers, and calculate the difference in tax liability based on the updated (reduced) credit.

Since the foreign government paid you interest, you should also recalculate the interest on the now-unpaid tax that you owe to the IRS.

See the IRS publication 514, and the instructions to form 1116.

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  • Would the interest be reported on OP's 2023 return, not the amended 2023 return, since the income wasn't received until 2023? I didn't see anything on the form 1116 instructions.
    – cmn.jcs
    Dec 7, 2023 at 3:29
  • The interest received with the refund - yes. But the OP owes interest to the IRS on the newly unpaid tax for 2022.
    – littleadv
    Dec 7, 2023 at 5:05
  • Any information on how calculate the interest that I owe IRS is appreciated.
    – user65985
    Dec 7, 2023 at 14:23
  • Let the IRS do the math and send you a letter
    – littleadv
    Dec 7, 2023 at 17:58

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