AMT

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

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sideShow
Posts: 2
Joined: Mon Sep 19, 2011 7:45 pm

AMT

Post by sideShow »

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
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

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
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
sideShow
Posts: 2
Joined: Mon Sep 19, 2011 7:45 pm

Post by sideShow »

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.
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