I am calculating our taxes using the FTC (Foreign Tax Credit), as it appears to be more favorable for us than the FEIE.
In taking the FTC, we end up owing $1200 in AMT. However, when I fill out an AMT Form 1116, we no longer owe any AMT.
Is this too good to be true? Our FTC on the regular Form 1116 is $5800, while our FTC on the AMT Form 1116 is $4800 (I am rounding off here, they're not that exact).
Can we file BOTH of these Forms 1116--ie., take BOTH the regular FTC and the AMTFTC? Or are we double-dipping in some way?
In other words: Are we supposed to use one or the other of these figures on line 47 of the Form 1040? Or is the AMTFTC figure ($4800) solely for use on Form 6251, and I can still use the regular FTC figure ($5800) on line 47?
If anyone can explain this, I would be so grateful! I thought I was making good progress, but this issue totally has me stumped.
(Also, if anyone can explain the simplified limitation election in plain English--and why someone may or may not want to take it--I would really appreciate it!)