Hi DaveF1006,
Thank you for all the detailed information on the Foreign Tax credit. So far I have ONLY looked at the forms, but have not updated anything on them. I used the SW capability to transfer my 1099s from my brokerage accounts. Your bullet #6 below about Simplified election for AMT had me worried. I started by looking at last year's return done by a CPA, but could not see anything that told me whether they had selected Simplified or Not. I then went through all my returns to see when this carryover started. I had to go all the way back to my 1996 return. Since starting in 1996, my returns look the same and have 2 different 1116 Forms (Regular and AMT versions). They seem similar, but not identical for each year. The 1116 forms are for option c (Passive category income from 1996 until current. I also have 2 carryover reconciliation tables in my returns (Regular and AMT). My income sources have been as follows during this timeframe:
1996 - 2011: W-2 + Sch. C + Passive income (mostly US but a small amount of foreign investments)
2011 - 2016: W-2 + Sch. C + Passive income (mostly US but a small amount of foreign investments) + Sch. E
2017 - 2022: Sch. C + Passive income (mostly US but a small amount of foreign investments) + Sch. E
2023: Sch. C + Passive income (mostly US but a small amount of foreign investments) - Sold Sch. E rental at EOY 2022.
2024: Passive income (mostly US but a small amount of foreign investments) - Stopped Sch. C business at the EOY 2023.
2025 and beyond - Passive income (mostly US but a small amount of foreign investments) + Possible W2 income.
I Googled to see about Simplified Election. One of the responses stated that if your return has 2 different 1116 (Reg and AMT) like my returns and 2 reconciliation tables that the original selection was NOT Simplified election. I am assuming that my CPA made that selection based on my multiple income sources way back in 1996. I am not sure where I would look and what to look for to tell me about which option was selected, but if you have any further information to where and what I should look for on the 1996 (or other year return) that would tell me the answer that would be great.
Thanks again!!
