1040-US: Simplified foreign tax credit limitation election for AMT

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Question

How do I make the simplified foreign tax credit limitation election for AMT purposes?

Answer

Enter X in the Elect Simplified Foreign Tax Credit Limitation field in Screen AMT. The application uses the foreign source regular taxable income to calculate the AMT foreign tax credit limitation. If foreign source regular taxable income exceeds the entire alternative minimum taxable income, each category automatically reduces by a pro rata share of the excess. Also, AMT Form 1116, Part I will be blank.

Related topic: Foreign tax credits and earned income FAQs (1040)

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