As a rule, if you receive foreign income in one category of income such as passive income from interest and dividends, you will select Simplified Election if you expect all future foreign cash flows arising from this activity. If you expect multiple income streams from other foreign income sources, you will not select Simplified.
Also, this Turbo Tax post explains that if you select the simplified method, you may not be able to claim a Foreign Tax Carryovers in case if you are unable to claim the full amount of your credit this year or future years.
If you aren't sure what type your future foreign income is, don't choose simplified.
@decimal
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