Amateur needs software recommendations: Forms 1116 and 6251

Bnell40 · Post by **Bnell40** » Tue Sep 01, 2015 10:34 pm

Hi, I'm a US citizen living in Canada. I paid to have my Streamlined filings done by a professional preparer, for years 2011-2013. Now I am trying to do my 2014 returns by myself, and this prior to October 15. But I am starting to have some big problems.
I have been able to compute all the numbers for many of the forms. It was not too hard, as I was able to follow everything that was done on the Streamlined filings. So I had no problem with Schedule A Itemized deductions, Schedule B Interest and Dividends, Schedule D Capital Gains, Form 8949 Sales of Capital Assets, and Form 5471 to report on a corporation, from which I get Subpart F income.
But now I am stopped; I can't figure out how to do the Form 1116 Foreign Tax Credit and weave in the Form 6251 Alternative Minimum Tax, for passive and general income. I don't even know how to begin. And needless to say, the Form 1116 is vital to my return, as a US citizen in Canada.
I am certainly ready to buy some software to help me. But on various other forums and websites, I have read that with some software, one needs to be rather knowledgeable to do the Form 1116: one practically needs to be able to do it themselves manually in order to do the input.
Could anyone please give me some suggestions for a software that might be best suited for me. Something that can take off and do the Forms 1116 and 6251, with minimal computation and control on my part. And if there are different grades of a software, please feel free to give me your ideas on that too. I would be more than happy to spend a little more to get something that is best for my situation and my own limitations.
Thank you for your time and help.

nelsona · Post by **nelsona** » Wed Sep 02, 2015 12:12 am

Taxact online handles these forms quite easily.

nelsona · Post by **nelsona** » Wed Sep 02, 2015 12:13 am

you should never do your taxes without using software

Bnell40 · Post by **Bnell40** » Sun Sep 06, 2015 11:59 am

Thanks, Nelsona. I have downloaded Taxact, and am now in the process of inputting some basic data and learning how to run it. So far I am understanding things and am happy with the software. But I have not yet started to input my foreign taxes paid; perhaps I will have further questions at that point. Thanks again for your help.

Bnell40 · Post by **Bnell40** » Thu Sep 24, 2015 8:42 am

Thanks again, Nelsona. Your advice really helped. I was able to advance very well with the Taxact software. However, I am now running into some difficulties, with the Form 1116 Line 16 adjustments to Line 15. With Taxact it appears that I must now do all computations myself on the side, and just enter them into the software. And I don't know how to do this. Is there another software that you know of that would carry this further for me? From my three years of Streamlined filings, I have "Losses Not Recharacterized", and "Losses Not Recaptured" in my Regular and my AMT tax computations. Thank you again for your help.

MGeorge · Post by **MGeorge** » Thu Sep 24, 2015 3:05 pm

Hi, I don't know your tax situation but for me, I have always entered $0 on line 16 of form 1116. The only way I know of where an amount would be entered is if you had negative passive income from a previous year, and you want to "recapture" the losses. This is an advanced tax topic that isn't usually encountered by US citizens living in Canada. Many would get away with not recapturing without consequence. Line 16 has other uses, but they are beyond my knowledge. Check your previous filings. What there ever an amount on line 16 of form 1116?