Due to an apparent faulty transfer into TurboTax a year ago from the PDF from another company’s software and my befuddlement in Step-by-Step, TurboTax says that I have elected the “simplified limitation” in calculating the foreign tax credit (FTC) for the AMT and am thusly constrained. The election only occurs in the first year that the AMTFTC is calculated. I have never been subject to the AMT, so the election has never been needed by the IRS. To fix this problem for Step-by-Step this year and following, do I have to start this year’s return over again without importing from last year’s TurboTax? Or is there an easier way? (For clarification, the “simplified limitation” should not be confused with the “adjustment exception.”)
