Hi, first I wanted to say that I really appreciate this forum and the help it provides. I have a question regarding the AMT FTC. I have read other threads on this topic but have not come across my situation.
I am filing as MFS and only have Canadian source income. The AMT on form 6251 is boosting my 'World Income' by around $35,000 and hence when I fill out the 1116 AMT form it seems that I cannot attain the full 100% FTC because now by Canadian income is less than the new adjusted AMT income.
On form 1116 AMT am I allowed to now adjust up my Wages on line 1a by $35,000 so I can then use 100% of the FTC? Any other suggestions? Thanks
AMT
Moderator: Mark T Serbinski CA CPA
Are you using software to complete these forms? If not, that would be my first suggestion.
You also may want to look at this:
http://www.serbinski.com/whats-new/amt- ... ions.shtml
You also may want to look at this:
http://www.serbinski.com/whats-new/amt- ... ions.shtml
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Hi nelsona, thanks for the reply.
Yes, I am using software for the calculations. The difficulty is that the software does not fill in line 1a of form 1116 AMT, it leaves it up to me. That is why I am unsure of whether to increase line 1a by the same amount that the AMT increased my income. I have searched many documents and cannot find an actual example for this situation. Unless I increase line 1a, then I cannot attain 100% of the FTC.
I read that the 90% limitation was removed effective in 2005, but I am not sure if that means I should get a 100% credit?
I can change my filing status, but I am trying to avoid that if it is just a matter of my filling out the forms incorrectly.
Yes, I am using software for the calculations. The difficulty is that the software does not fill in line 1a of form 1116 AMT, it leaves it up to me. That is why I am unsure of whether to increase line 1a by the same amount that the AMT increased my income. I have searched many documents and cannot find an actual example for this situation. Unless I increase line 1a, then I cannot attain 100% of the FTC.
I read that the 90% limitation was removed effective in 2005, but I am not sure if that means I should get a 100% credit?
I can change my filing status, but I am trying to avoid that if it is just a matter of my filling out the forms incorrectly.