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Level 3
posted Mar 24, 2020 7:50:39 AM

AMT adjustments to foreign tax credit Form 1116

It looks like I once used the AMT adjustments for form 1116 foreign tax credit so I can’t use the simplified method, though I doubt I will ever have an entry for the several questions the longer interview asks.  The only one I have doubts about is the question on high tax kickout.  Would this be reported on a 1099?  I only have passive mutual fund (RIC) income (dividends) from an international fund.  

0 2 1607
2 Replies
Expert Alumni
Mar 26, 2020 8:03:55 AM

High tax kick out refers to passive income when the foreign tax you paid on the income exceeds the highest US tax that can be imposed on the income. When this happens, it is treated as general limitation income instead of passive.  From the information you provided your foreign tax would not qualify.

Level 2
Jul 4, 2020 10:46:29 AM

My foreign tax credit on Form 1116 is higher than on Form 1116 AMT.  Turbotax put the higher credit into my 1040 form and showed no error in the review.  Is it correct, or I shall put lower credit from 1116 AMT into 1040?

An explanation is much appreciated.