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February 1, 2023
Question

Foreign tax credit and AMT

  • February 1, 2023
  • 1 reply
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How do I figure out what how the foreign tax credit can reduce my AMT?

    1 reply

    JohnB5677
    February 1, 2023

    The IRS states:

    • "In addition to your regular income tax, you may be liable for the alternative minimum tax. 
    • You may be able to claim a foreign tax credit for this tax.  However, there are restrictions on how much foreign tax credit taxpayers can apply to the alternative minimum tax. 
    • You must prepare separate Forms 1116 to compute the foreign tax credit and foreign tax credit limitation for alternative minimum tax purposes.
    • Refer to Form 6251, Alternative Minimum Tax-Individuals, and its instructions for a discussion of the alternative minimum tax foreign tax credit."

    Please see Part II—Alternative Minimum Tax lines 7 & 8    Instructions for Form 6251 (2022)

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