Saw some discussion on this, but didn't seem to see a definitive answer.
In previous years, I have taken a Foreign Tax Credit. However this year, after filing out this info, it is asking me about a "Simplified Limitation Election For AMT." When I look at form 6251, line 11 for AMT is zero, so it doesn't appear that AMT applies to me. If that is the case, why is TurboTax asking me this question?
If you take the FTC for regular income tax purposes you must decide how the FTC will be calculated for AMT purposes. The non-simplified method could result in you owing AMT. So, in reality, the election should have been made the first year you took the FTC for regular income tax purposes.
The election dates back to 1998
So it's something that somehow TT is now asking, even though I have taken FTC before and AMT does not apply in my case? E.g. With it asking if this is my first year of election, why is this something that is coming up now vs in previous years? I'm unclear what makes me now eligible.
Exact same issue here. AMT does not affect my taxes (and has not in previous years). I have a small amount of foreign tax on investments <$300, as in previous years. Nonetheless TT is forcing an election this year? Same questions. Why in this year? And the TT message thereafter is a bit cryptic (to me) as well about the amount of “passive category income tax credit exceeded,” and the same for “passive category income tax credit for AMT purposes exceeded ….” TT also seems now to be generating a form 1116 because of this? And TT is asking for an “explanation statement” for this form 1116, or it throws an error in smart check. Anyone know what is the solution for this? Is it possibly an error in the TT code that should have a quick review and update? Thanks.