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Level 1

How do I know if I've been eligible for/made the simplified foreign tax limitation election for AMT in a previous year?

 
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How do I know if I've been eligible for/made the simplified foreign tax limitation election for AMT in a previous year?

If you did make the simplified foreign tax limitation election for AMT in a previous year, you would have only one Form 1116 for each type of income.  For example, if you only had foreign tax credit on wages in a prior year,  and you did make the simplified election, you would have only one Form 1116 for general limitation income.  

 

If you did not make the election, you would have 2 Forms 1116 for general limitation income in your return, one for regular tax and one for AMT.

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Expert Alumni

How do I know if I've been eligible for/made the simplified foreign tax limitation election for AMT in a previous year?

If you did make the simplified foreign tax limitation election for AMT in a previous year, you would have only one Form 1116 for each type of income.  For example, if you only had foreign tax credit on wages in a prior year,  and you did make the simplified election, you would have only one Form 1116 for general limitation income.  

 

If you did not make the election, you would have 2 Forms 1116 for general limitation income in your return, one for regular tax and one for AMT.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Level 2

How do I know if I've been eligible for/made the simplified foreign tax limitation election for AMT in a previous year?

So years ago, I see that Turbo did crank out two form 1116’ s (we are dealing wiht small numbers here) and it looks like it didn’t change my taxes.  Anyway now when I go through the interview for what I will call the complicated method I have nothing to enter.  It makes me think I should have made the simplified election (was I elegible?) the first time years ago?  

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Level 3

How do I know if I've been eligible for/made the simplified foreign tax limitation election for AMT in a previous year?

Been using TT since 2014. All our (small) foreign income and tax has always been passive, exclusively from mutual funds with international stock holdings in a taxable account. We've never owed AMT in any year (including 2019), and have never needed more than one 1116 - in fact, until 2018 we didn't need an 1116 at all because the total amount of the foreign tax credit was below the threshold, and in 2018, it was all utilized for the credit. I did not make any "simplified election" that year because TT never asked - completely irrelevant.

 

So why is TT now telling me that I have elected the "simplified method" before? And why is it computing an "AMT Foreign Tax Credit Carryover" when the entire foreign tax amount is being utilized in the normal way for the credit and no AMT is imposed? It's just as irrelevant this year as it was before.

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