Hi there,
I had foreign tax credit only due to VXUS from Vanguard. Hence I had submitted 1116 for 2021 with foreign tax credit of 490. I don’t remember choosing Simplified limitation election and I see the following question in my Turbo Tax interview this year.
My VXUS has Total Dividends & distributions of 7,945.09 and -623.84 Total Foreign tax withheld and 624 foregin tax credit for 2022.
Please advise what exactly should I look for in my previous tax return to confirm if I used Simplified limitation and what would be the best choice this year. Thank you.
“Simplified Limitation Election for AMT
We’ve reported your interest, dividends, and Schedule K-1 entries from each county. We need to ask you about AMT.
Your 2021 return shows that you previously decided to use your regular taxable income and deductions on the Form 1116 you filled out for AMT purposes. This is called using the Simplified Method. You must continue to use this method unless you have received written permission from the IRS to change.
Do you want to use the Simplified Method for 2022?”
