Can I not report some foreign taxes paid?

According to my brokerage statements I paid $2,700 in foreign taxes that I could get a credit for; but I am way into AMT and lose it all when I file a 1116.

Can I not report $1,700 of the taxes paid? Then I am under $1,000, don't have to file a 1116, and get the $1,000 credit.

I know I can carry the credit forward or backwards, but I am always in AMT and never get to use the credit, so that doesn't work. I just solved the problem for the future by selling most of my foreign stocks... I don't know why I didn't think of that years ago.

Reply to
Confused
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You cannot choose to select the de minimis amount which gives you a foeign tax credit without using the 1116.

And what ever made you think it was 1000? It's signiicantly less.

Reply to
Arthur Kamlet

Its a credit. If I have $800 in foreign taxes paid, I get $800 in credit. No? That is what happens when I run H&R Block at Home. (Taxcut was a much better name; why did they change it?)

But if I can't do it, I can't do it.

Reply to
Confused

name; why did they change it?)

From the 1040 instructions: ???Line 47

Foreign Tax Credit

If you paid income tax to a foreign country, you may be able to take this credit. Generally, you must complete and attach Form 1116 to do so.

Exception. You do not have to complete Form 1116 to take this credit if all of the following apply. All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement).

The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly).

You held the stock or bonds on which the dividends or interest were paid for at least 16 days and were not obligated to pay these amounts to someone else.

You are not filing Form 4563 or excluding income from sources within Puerto Rico.

All of your foreign taxes were:

Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and

Paid to countries that are recognized by the United States and do not support terrorism.

For more details on these requirements, see the Instructions for Form

1116.
Reply to
Alan

The foreign tax credit is allowed under AMT. See line 32 of form 6251. The line has complicated instructions at:

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I am not familiar with this topic. When I did my own return, which had foreign tax on 1099-DIV less than $600, I didn't take the credit because I didn't know about the line, then next year file an amended return taking this amount, as well as did that in that year's return.

Reply to
remove ps

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