How do I remove election to use simplified method for foreign tax credit

Forum|Forum|2 years ago
March 5, 2024
1 reply
20 views

In ProSeries Professional I am having trouble finding the box to click to remove the election to use the simplified method for foreign tax credits. This is the first year with foreign tax credits for this client, and in response to remove an error, I said yes to use the simplified method. I now want to go back and say no in order to compare the results.

Yes, this falls under the category of "You don't have to be very smart to be me!"

ProSeries Professional

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Best answer by BobKamman

The foreign tax paid is well over $700, so I am trying to make sure that I get the maximum credit.

If it's over $600 you can't use the simplified method. So why are you asking? Well, maybe you are asking if it's better to pretend the amount was only $600 and just claim that much. It might be. Someone here might say that's not allowed, and that might be right.

BobKamman

Level 15

You must be smarter than I am because I've never seen the question about using the simplified method. I just enter the foreign taxes directly on Schedule 3, Line 1 (you have to click to another entry line). If the foreign tax is low enough to qualify for the simplified method, it's always better to use it.

L

ljsmith2

Level 5

Is there a way to directly enter the current year foreign tax credit on Schedule 3 when Form 1116 has been used in the prior year?

I have not been able to make a direct entry when the Form 1116 already exists and there is a small amount of carryover foreign tax credit of just a couple dollars.

Thinking out loud.....

If the carryover is just a couple dollars, can I remove the Form 1116 and enter the couple dollars on Schedule 3 so that moving forward I can make direct entries each year?

Thinking that the cost of preparing the Form1116 is not worth the small amount of carryover.

R

Randy HaynesAuthor

Level 4

The foreign tax paid is well over $700, so I am trying to make sure that I get the maximum credit.

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