I’m being asked if this is the first year I qualify for the simplified method of calculating foreign tax credit (for AMT?) and I don't know the answer!

[LinaJ2020]

If your foreign income falls in one of the general categories ( for example, wages, interest income), you should use the simplified method.  On the screen, you would check Yes as First year I am eligible for the election if you have not made an election in 2018 or a previous year.  

To see more information, click here for the post: Simplified foreign tax limitation election

[zellgrotto]

Thank you for your response. How can I tell if I've used this method in the past? I don’t see anything on last year's return that indicates one way or the other.

[KarenJ2]

If you have 2 Form 1116 for each category of income in your 2018 tax return (one Form 1116 is for regular tax and one Form 1116 is for AMT tax calculation) then you have not used the simplified method in 2018.  

If you have only 1 Form 1116 in your 2018 tax return for each category of income, then you did use the simplified method.  So for example, if you only had foreign wages, you would have 2 Form 1116 for general limitation income in 2018 if you did not use the simplified method.  If you did use the simplified method . you would only have 1 Form 1116 for the general limitation income.