In 2020, I paid a total of $55 in Foreign Tax, all from “passive category income”. This amount was reported to me on my brokerage 1099 and was reported to a RIC in TT. After filling out the ‘Foreign Taxes’ section in TT, TT populated form 1116 and based upon the calculation there determined that I was only entitled to a credit of $15.
The instructions to form 1116 state: You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 21 of the form) won't apply to you. This election is available only if you meet all of the following conditions. (I meet all the conditions)
Note: I have a carryover from prior years for “general category income” and TT also shows carryovers related to AMT.
But for this year I want to skip the form 1116 and just take the 55 credit for the taxes I paid in 2020, but TT won’t let me do it.
