In addition to the requirements stated in the form 1116 instructions to qualify for the exemption to be implemented, TT has the following additional requirements:
The program will automatically make this election if all of the following are true:
* 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.
In your case, the f1116 computation worksheet category is general category but TT makes no distinction. If there are any carryovers in any category, TT will not use the exemption.
