Form 6251: Simplified FTC election must be entered

It depends on what the foreign income is.  The simplified method is, well, simple.  If your income is simple like wages or interest or dividends or something then choose the simplified method.  If you have foreign income from trusts and other complex sources then you need to select no and start answering all of the questions.

@taxcurious1 

Thank you! Yes the income is simple. I only have income from wages and interest/dividends. 

Couple followup questions:

1. For the question: "Indicate whether this is the first year you are eligible to make the simplified foreign tax limitation election for alternative minimum tax (AMT) purposes. Once you make this election, it applies to all later tax years and can't be changed unless you obtain IRS consent.", how do I know if this is my first year? I don't remember ever having to make this decision in the past so I think it would be my first year?
   

2. If I select yes to use the simplified AMT foreign tax credit limitation this year, how does that 

   affect

    future years? Does it mean that I can't use the simplified AMT FTC limitation in future years? Does it mean that I'll have to always use it in future years?

1.  If you haven't had to deal with it before then it's your first year.  You're good.

2.  If you decide to invest in more complicated income producing activities outside the US in the future AND you expect to trigger the AMT then you will need to request to change methods down the road.  Not something I would lose sleep over.

@taxcurious1 

Okay got it, thanks!

Does selecting this mean that I lose the ability to do any carryovers of remaining FTC this year or in future years? Is there a way to know whether this applies to me? I'm not sure what my foreign tax liability is compared to my foreign tax credit (slightly above $300 this year).

No.  This is strictly used for calculating the AMT and has nothing to do with your foreign tax credit or the carryover.

@taxcurious1