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Solved

Simplified Limitation Election AMTFTC,

Forum|Forum|5 years ago
February 23, 2021
1 reply
31 views

In prior years while an expat, the tax return contained both Form 1116 and Form 1116 AMT. The company I worked for had a CPA firm prepare tax returns. Every year the tax return contained both Form 1116 and Form 1116 AMT. In every year the amount of foreign tax credit claimed on Form 1040 was from the from Form 1116 and not Form 1116 AMT. Does this mean that I have never used AMTFTC for any of those tax years?

Best answer by ReneeM7122

Yes, it sounds like you didn't use use AMTFTC in prior tax years. But it does sound like you got the full foreign tax credit. The AMT foreign tax credit is similar to the foreign tax credit for regular income tax purposes, except that it is limited to the foreign tax on foreign source alternative minimum taxable income (AMTI) instead of foreign tax on regular taxable income. Without seeing your returns that were prepared by your CPA firm, we can't be sure if you were subject to AMT or not, but it sounds like you were not. If you only used Form 1116 and not 116 AMT, it would indicate that you weren't limited to the full foreign tax credit because of AMT.

ReneeM7122Answer

Level 9

Yes, it sounds like you didn't use use AMTFTC in prior tax years. But it does sound like you got the full foreign tax credit. The AMT foreign tax credit is similar to the foreign tax credit for regular income tax purposes, except that it is limited to the foreign tax on foreign source alternative minimum taxable income (AMTI) instead of foreign tax on regular taxable income. Without seeing your returns that were prepared by your CPA firm, we can't be sure if you were subject to AMT or not, but it sounds like you were not. If you only used Form 1116 and not 116 AMT, it would indicate that you weren't limited to the full foreign tax credit because of AMT.