Why does Turbo Tax use the Foreign Tax Credit amount from my regular worksheet and not the alternative miniumum tax calculated amount?

[garypieroni]

The federal tax credit is a different amount when calculated under the ALM but the amount deducted on Form 1040 by Turbo Tax is the amount calculated on the original Form 1116.  Should it not be the amount under ALM since it's lower?  Just an intuition...

[KatherineC · Accepted solution]

The amount of Foreign Tax Credit calculated for the Alternative Minimum Tax is only to be used in the calculation of the Alternative Minimum Tax.  So, if there was a calculated amount of Alternative Minimum Tax on your return, it would include a deduction for the amount of Alternative Minimum Tax Foreign Tax Credit.

The amount that would be deducted on your tax return, would be the original calculated amount of Foreign Tax Credit.

[march4666]

TurboTax indicates I am not eligible for the AMT however when I do the foreign tax credit answers- it makes me state this is the first year I'm eligible for AMT.  Is the AMT criteria for foreign tax credit separate than my regular taxes?  I do not want to have to pay AMT just to get the foreign tax credit, I will take a deduction.