TurboTax Form 1116 Foreign Tax Credit
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Copernicus
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TurboTax Form 1116 Foreign Tax Credit
Form 1116 (regular) shows lower foreign tax credit than AMT Form 1116. Why does TurboTax use the smaller amount on 1040 line 48?
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Random Poster
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Re: TurboTax Form 1116 Foreign Tax Credit
The tax credit from Form 1116 goes on line 48 of Form 1040.
The tax credit from AMT Form 1116 goes on Line 32 of the AMT Form 6251.
The tax credit from AMT Form 1116 goes on Line 32 of the AMT Form 6251.
Re: TurboTax Form 1116 Foreign Tax Credit
Follow lines below line 32 on the 6251 and it appears that the AMT may get impacted by any differences between numbers in the calculation.
In the absence of any FTC, AMT is TMT minus regular tax. Looks like when you have FTC, AMT is defined as the difference of the "net" TMT and the "net" regular tax = (TMT - AMT FTC) minus (regular tax - FTC).
In the absence of any FTC, AMT is TMT minus regular tax. Looks like when you have FTC, AMT is defined as the difference of the "net" TMT and the "net" regular tax = (TMT - AMT FTC) minus (regular tax - FTC).
Last edited by kaneohe on Mon Mar 12, 2018 9:19 pm, edited 1 time in total.
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Copernicus
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Re: TurboTax Form 1116 Foreign Tax Credit
Wonderful! Thanks to both replies!