In order for TT to use the exemption automatically, all the following conditions must hold:
* The total sum of foreign taxes entered on Forms 1099-INT, 1099-DIV, the Schedule K-1 Worksheets, and any manual entries made on the 1116 Computation Worksheet lines 8p and 8r1 doesn't exceed the $300/$600 limit.
* If there is a foreign tax amount on a Schedule K-1 Worksheet, the category of income selected is "passive category income".
* If a category of income box is checked on any Form 1116, the category checked is "passive category income".
* If a category of income box is checked on any Form 1116 Computation Worksheet, the category checked is "passive category income"
.
* There is no amount entered on the Federal Information Worksheet for "Excludable income from Puerto Rico".
* There is no foreign tax credit carryover from another year that can claimed in this year.
