Anyone familiar with HOw to carry over Tax Credits?

I am one of those unfortunates who did not file US taxes for several years after starting work in the UK, hence I am filing multiple years at once. 

PROBLEM: If I have unused tax credit for 2001 and 2003 which Iwill need to use for 2005? 

DO I follow PLAN A:
Where I then put the unused tax credit from 2001 on to line 10 (carry over or carry back)of FORM 1116 in 2002. Then in 2003 I add  the total from the 2002 unused tax credits on to line 10 of form 1116 for 2003 form etc, until I arrive with the  sum of unused tax credits on my 2005 form 116. Hence having a trail of credits on each return from 20001 until I reach 2005.   -or-

Alternatively PLAN B

On my 2005 form do I merely put the sum of 2001 and 2003 unused tax credits onto line 10 of form 1116, make a note to myself of how I arrived at that figure, hence not mathematically carrying it foward until it is needed, so to speak.

John

Plan A is the correct one. Do not forget however that you will need a separate form 1116 and separate calculations of carryovers for AMT purposes for every year (form 6251).

Indeed if you pay AMT in the years when 10% of foreign tax credits were disallowed for AMT purposes you may also have an AMT carryover (form 8801) that  may be creditable in a later year.