TurboTax Form 1116 Foreign Tax Credit

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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Copernicus
Posts: 323
Joined: Thu May 16, 2013 4:38 pm

TurboTax Form 1116 Foreign Tax Credit

Post by Copernicus » Mon Mar 12, 2018 2:16 pm

Form 1116 (regular) shows lower foreign tax credit than AMT Form 1116. Why does TurboTax use the smaller amount on 1040 line 48?

Random Poster
Posts: 1680
Joined: Wed Feb 03, 2010 10:17 am

Re: TurboTax Form 1116 Foreign Tax Credit

Post by Random Poster » Mon Mar 12, 2018 2:46 pm

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.

kaneohe
Posts: 5156
Joined: Mon Sep 22, 2008 12:38 pm

Re: TurboTax Form 1116 Foreign Tax Credit

Post by kaneohe » Mon Mar 12, 2018 3:01 pm

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).
Last edited by kaneohe on Mon Mar 12, 2018 9:19 pm, edited 1 time in total.

Copernicus
Posts: 323
Joined: Thu May 16, 2013 4:38 pm

Re: TurboTax Form 1116 Foreign Tax Credit

Post by Copernicus » Mon Mar 12, 2018 6:45 pm

Wonderful! Thanks to both replies!

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