AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
AMT and foreign tax credit
Posted by: carolm, June 13, 2016 04:58PM
I am scratching my head over the instructions for Line 32 of Form 6251, regarding the AMT foreign tax credit. First, it says, "figure your foreign tax and complete Form 1040, line 48." OK, I did that. Then, it says I should figure out if I need to file Form 6251. OK, did that, and yes I do need to file it. Then it tells me to prepare a separate Form 1116 for each category of income and write “AMT” on each. OK, got that, as it happens I only have one category of foreign-source income, so I only need to do one "AMT Form 1116" in addition to the regular Form 1116.
But now comes the part I don't get:
The instructions say: "When applying the separate categories of income, use the applicable AMT rate instead of the regular tax rate." But, I don't see anywhere on Form 1116 that requests information on tax rates, AMT or otherwise.
So how is my "AMT Form 1116" going to be different from my regular Form 1116?
Also, when I completed Form 6251 Line 31, it appears to put me in the 26% bracket, whereas according to the Form 1040 tax tables I'm in the 28% bracket.
Totally mystified by all of this, any help appreciated.

Re: AMT and foreign tax credit
Posted by: carolm, June 13, 2016 05:03PM
p.s. I should have added that my foreign-source income is earned, not passive. I do not have any foreign-source passive income.

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