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Why am I getting asked about Simplified Limitation election for AMT?

Forum|Forum|4 years ago
March 5, 2022
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I was filling out the foreign tax credit info, and got to this screen:

I'm not subject to AMT. I've tried deleting forms 1116 and 6251, but when I fill out the foreign tax info again, it creates a new 6251 and I get to this screen shot shown above. What else can I do? Thanks

Best answer by DaveF1006

@DaveF1006

No, but it is the 1st year that my foreign tax credit resulted in a carryover to next year.

You may have not been asked this question in previous years but the program is asking you the question in case if you do have an AMT reporting requirement. If this is the case, if you have one just one category of foreign income to report, you can elect to choose the AMT Simplified reporting requirement. If you have several categories, do not choose the simplified election.

Make a selection when it asks so you can move on with your return without delays.

@Andybill

DaveF1006

Go ahead and answer the question and select Simplified Limitation election for AMT. If you never claimed this before, select that this is a first year election. This is the only thing that you can do so you can move on in your return. It will not impact your return if you do not have an AMT reporting requirement in the first place.

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A

AndybillAuthor

Ok thanks Dave. So, to be sure, making this election now won't "lock in" the election in future years when I might be subject to AMT?

DaveF1006

No, if you take the AMT Simplified Election this year, you must stick to it in the following years unless you obtain the IRS consent to change it. For the first year's election, if you have only one category of foreign income to report, then choose the Amt Simplified Election. If you have several categories, don't make this election.

If you aren't sure how may categories of foreign income you report in the future, don't choose AMT Simplified Election.

@Andybill

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