IRC §59 · Form 1116

AMT Foreign Tax Credit

Paid foreign tax? The FTC limit changes when AMT kicks in. Model both sides and the carryover.

Foreign-source taxable income

Foreign tax paid

US regular tax (before FTC)

US AMT (tentative minimum tax)

Total taxable income (worldwide)

AMT exemption already applied

AMT FTC Computation

Regular FTC limit

AMT FTC limit (§59)

Allowed regular FTC

Allowed AMT FTC

Carryover (1-yr back, 10-yr fwd)

Net tax after AMT FTC

§59 limits the AMT FTC. Excess carries 1 year back, 10 years forward. Computed on Form 1116 (AMT version).

Talk to a preparer with foreign income experience

Simplified model. Real calculation requires Form 1116 by category (passive, general, etc.) and high-tax kickout analysis under §904(d). Educational tool, not legal advice. Call 689-331-5723 or email info@zerofusstaxes.com.