This is my first year with TT (Premier 2024 version). I have created my return and entered all information and see that I have an error flag on my 1099-DIV worksheet when I go to the FORMS. It is related to how to handle "Foreign tax paid" - Box 7 on Form 1099-Div Worksheet. For 2024 I have about $1,500 in Foreign taxes paid and there are 4 options to select from:
a. Deduct FT on Schedule A
b. Double Click to link to a copy of Form 1116
c. For Form 1116, select which column A, B, C
d. Total foreign source income.
I am transitioning from years of CPA prepared returns (thru 2023) to TT Premier in 2024. My previous returns done by a CPA has had Form 1116 Foreign Tax Credit and Carryover Reconcilation table with data from the previous 10 years (They also provided the corresponding Form 1116 AMT)
I am not sure which option I am suppose to select from the list above, but option a: for Schedule A seems to be incorrect. I assume that I should pick either option B or C, but am not sure if I update on the Form(s) or I am suppose to work through some section of the Step-By-Step process. I have Form 1116 and the CarryOver Summary data from my 2023 CPA return, I just need to know how to proceed in TT. I have been limited on how much FT credit on Schedule 3 I can take each year due to the Form 1116 calculations, but assume that I need to continue with the carryover table for 2024 and future years in TT. Any help on the best way to proceed in TT would be great.
Also, since my CPA has provided AMT in the past do I need to go through the AMT stuff in TT? Why did TT not provide that calculation automatically or is there some threshold that needs to be met?
