I pay foreign taxes in connection with some investments. After I enter those taxes from the Forms 1099. the program asks if I wish to take a deduction or a credit. I choose credit and the program tells me my credit is $109. When I choose continue I am told that "it turns out you do not qualify for this credit."
When I click on "why don't I qualify for this credit"? I get the following pop-up dealing with the minimum tax credit :
"Why don't I qualify for the Prior Year Minimum Tax Credit?
An individual, estate or trust is eligible to complete Form 8801, Credit for Prior Year Minimum Tax to claim the minimum tax credit if they had any of the following for 2023:
An alternative minimum tax (AMT) liability and adjustments or preferences other than exclusion items
A credit carryforward to 2023 (on 2022 Form 8801, line 26)
An unallowed qualified electric vehicle credit
Form 8801 is used to figure the minimum tax credit (MTC), if any, for AMT incurred in prior tax years, and to figure any credit carryforward to 2024. You can only claim this credit in a year when you don’t have to pay AMT, and you can't use the credit to reduce your AMT liability in the future. However, you can carry over any unused portion of the credit to future years.
Based on the info you’ve entered, you aren't eligible for the Prior Year Minimum Tax Credit. If you think you qualify for this credit, go back and double-check the info you entered."
This response has nothing to do with the foreign tax credit.
