Form 1116 - AMT missing

[TX202502]

I'm in the process of finalizing the 2024 return and am currently comparing it with the return from 2023 (CPA prepared) and see that Form 1116 for AMT is not included by TurboTax Online, but it was included in my 2023 return.

For Simplified Limitation Election Eligibility I selected:
      "I chose NOT to use the election in 2023 or a previous year" 

By making this selection my understanding is that there would be a Form 1116 - AMT generated and part of my return. Is there a way that the Form 1116 - AMT can be generated as I believe that it should be included if it has been in the previous returns?

[MarilynG1]

Without being able to see your return (or your prior year return) in this forum, I would suggest that perhaps you are not subject to AMT this year (or your regular tax exceeded the AMT), so the Form 1116 AMT was not prepared.

Here's more detailed info on AMT and discussion on Form 1116 AMT.

@TX202502 

[dhung]

Having the same issue. Missing the AMT FORM 1116 Schedule B with TT online for 2024. Want to make sure preceding amounts are carryover. 

[BrittanyS]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[TX202502]

Thanks Brittany,

My token number is 1292436.

I talked to an agent about the issue a few weeks back and he believed that the AMT form is not required and that TurboTax has 100% accuracy policy if anything is wrong. I would of course like to have it correct before filing. 

As fas as he could see these are two relevant questions:

   Was simplified election elected in 1997 = no

   I want to use simplified election now = no

I appreciate you looking into this further, as I would to get a confirmation that I should have /  should not have a form 1116 - AMT included in my return.

[BrittanyS]

Looking through the diagnostic file on form 6251 it is marked as not to use the simplified AMT method.  The form would only need to be included if you selected to use the simplified AMT method or had a requirement to use the AMT method.  From your selections you would not be required to include the form.  See screen shot below:

@TX202502 

[egen3000 · Accepted solution]

This answer is not satisfactory. From further investigation, the simplified method uses the same starting point of income in line 17 of both versions of the form (1116 and 1116-AMT). However, the calculations are different, and the result is different, and you always need to keep record of both versions. My previous CPA explained that you need to keep track of both calculations for the life of your FT (foreign tax paid) carryovers (10 years). You need both 1116 and 1116-AMT in case you hit AMT in the future, and you need to know what carryovers are available to you when this happens. Most people don't hit AMT, but if they do, they need to have the info available instead of having to go back and recalculate 10 years back. 

I too was dismayed to find the info and the tracking worksheet are not printed for FTC 1116-AMT. If you dig in TurboTax forms mode, you can find the FTC AMT carryovers buried (I found it in the 1116 Comp Wks form, towards the bottom. There's a table tracking the carryovers into the current year, and a table tracking the carryovers into next year). The problem is that I have to launch TurboTax software in my case, for that year, to see it.  There was some bug in 2022 that's preventing me access now to that year, and the info is not in the PDF I generated. So I can't find the AMT calculation of FTC allowed and FTC carried over for 2022.  I've had it available for every single year from my CPA, but now that I moved to TurboTax, I can't access this info for 2022.

The expert is also not correct about the forms only printed in simplified mode. In 2023 I apparently misunderstood this selection, and didn't know it was NOT simplified previously, so I chose, as I now realize, simplified mode. This is from my Forms mode for 2023:

Obviously now I have a problem because I'm too lazy to file an amendment for 2023 for this, and I'm not sure if for 2024 I should stay consistent with what my CPA chose to do for the previous dozen years, or should I be consistent with the uninformed selection I made last year.  I'm thinking I should go back to NON- simplified. appreciate thoughts on this.

But back to the main point, despite selecting simplified method last year, form 1116-AMT was NOT generated.  It is not in my list of forms for 2023 inside TurboTax and it is not in the full-blown-all-records printout.

The expert is assuming that the form 1116-AMT is only needed if you choose the simplified method.  This assumption seems to be wrong by general practitioner opinions, that have nothing to do with TurboTax.  I believe both versions of the form are needed no matter what method is selected.

And no matter what method is selected, TurboTax is not printing it.

Bottom line: it is not a feature, it's a bug.

[TX202502]

@egen3000 Thanks so much for the detailed summary of your situation that seems to correlate to my overall understanding as well!

I believe that this is a bug that TurboTax should take care off and in a best case scenario would take care of quickly, but that may not be very likely.

I can't give advice on if you should back to NON-simplified, but hopefully experts can weigh in with best course of action.

My plan of action will be to file an extension and consider go back to use a CPA despite prepaying for this year's return here.

 

[egen3000]

@TX202502 Note that there's a workaround to see the form 1116 - AMT even if it doesn't get printed:

click on the 'open form' button / icon at the top left in TurboTax. in the little pop-up window type the name of the form you are looking for: Form 1116 AMT. Most likely the form exists, and it will open.  You will be able to see the form despite the fact that the form DOES NOT appear in the list of 'Forms in my Return' on the left panel.

If you want to keep record of what the form said, outside of having to open the software, you could take screenshots.