I have about $3700 interests from foreign bank accounts and paid $566 foreign tax in 2023. I have reported them in Box 1 and Box 6 in 1099-INT respectively. Now, TurboTax (TT) says I am subject to AMT and asks me whether 1) First Year I am eligible for the simplified foreign tax limitation lection (SLE) for AMT purposes, 2) I made the election in 2022 or a previous year, or 3) I chose not to use the simplified foreign tax limitation election in 2022 or a previous year. I have done foreign tax credit (1116) and AMT in 2014 and 2015 but that time, PWC did my tax return so I am not sure if I/they chose that election or not. For the past (recent) years, I also reported my interest income from foreign bank accounts and foreign tax through TT but probably because it was smaller, it was handled without using the form 1116 (no question about SLE was asked). Now I am stuck with this question and don’t know how to answer and proceed. What’s also concerning is TT says once I make the SLE election, it will be carried over unless IRS consents. I am not even sure what would be implication for SLE election or not. Please advise. Always appreciate the help from the community. Thank you.
