Foreign Tax Credit & AMT

Forum|Forum|3 years ago
April 6, 2023
1 reply
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I did not pay AMT in 2021 and did not file a form 6251. However, my turbotax worksheets from 2021 show that I utilized a portion of my foreign tax credit for AMT purposes. Is this an error? How would I have utilized this credit when there was no AMT paid?

MinhT1

Level 15

This is not the foreign tax credit utilized for AMT purposes. This is the AMT foreign tax credit, which is the foreign tax credit to be used for the calculation of AMT. It is shown for information.

The AMT foreign tax credit is similar to the foreign tax credit for regular income tax purposes, except that it is limited to the foreign tax on foreign source alternative minimum taxable income (AMTI) instead of foreign tax on regular taxable income.

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PatinWAAuthor

Level 2

This is on my carryover worksheet. Foreign Tax Credit Carryovers to 2022>Alternative Minimum Tax>2021: Foreign Taxes 1142, Utilized 701, Carryover 441. Why would any of the amount have been "utilized" when I paid no AMT? I am still confused by this