My foreign tax credit on Form 1116 is higher than on Form 1116 AMT. Turbotax used the higher credit from form 1116 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? I tired to replace the figure on 1040-SR from 1116 AMT instead of 1116, but Turbotax would not permit it. I assume then that the right choice is using the figure from 1116, and not 1116 AMT. Is this correct?
An explanation is much appreciated.
This is correct if you are not subject to Alternative Minimum Tax (AMT) (and it sounds as if you are not, or TurboTax would have selected the lower credit.)
The lower AMT credit form is generated in case of the possibility of credit carry forwards (or carrybacks) that fall into years in which the taxpayer is subject to AMT.
This is correct if you are not subject to Alternative Minimum Tax (AMT) (and it sounds as if you are not, or TurboTax would have selected the lower credit.)
The lower AMT credit form is generated in case of the possibility of credit carry forwards (or carrybacks) that fall into years in which the taxpayer is subject to AMT.