Just wanted to add that I ran into this exact issue last year. After talking with several tax professionals, I learned that the AMT version of Form 1116 should use your AMT income figures rather than your regular taxable income. That's why FreeTaxUSA is giving you a different result than TurboTax. One thing to consider - if you're hit with AMT, you might be able to carry forward excess foreign tax credits to future years when you might not be in AMT. This has saved me thousands over time as those credits eventually get used. Also check if you qualify for the simplified limitation election for foreign tax credits, which might eliminate some of this complexity (though it sounds like your situation might be too complex for this).

If you're dealing with AMT and Form 1116 regularly, I'd strongly recommend investing in professional tax software rather than consumer versions. I use Drake Software now after years of frustration with TurboTax and others. The professional versions have much better handling of complex situations like AMT foreign tax credit interactions. They also provide detailed worksheets showing their calculations so you can verify everything. For the specific issue you're asking about - the AMT Form 1116 calculations should definitely use your AMT-adjusted income figures. This is one area where consumer tax software often falls short because they don't always apply the AMT adjustments consistently across all related forms.

Has anyone calculated exactly how much you lose by not getting the FICA tax savings? I'm trying to decide if it's worth the hassle of changing my payroll deduction midyear vs. just making a direct contribution in December.

Great discussion everyone! I'm actually dealing with a similar situation and wanted to add a few points based on my research: First, regarding the FICA savings calculation - it's worth noting that if you're already at or near the Social Security wage base limit ($160,200 for 2023, $168,600 for 2024), you might only be missing out on the 1.45% Medicare portion rather than the full 7.65%. This could change the math for higher earners. Second, I discovered that some employers allow you to make "catch-up" payroll deductions later in the year if you realize you want to contribute more. Mine lets me submit a form in November to increase my December contribution significantly, which gives me most of the year to figure out my finances while still getting the FICA benefits. Finally, don't forget about state tax implications - some states have different rules for how they treat retirement contributions, so the payroll vs. direct contribution choice might affect your state taxes differently than federal. Worth checking with a tax professional if you're in a state with high income taxes. The consensus here seems clear though - if your plan allows it and you can swing the cash flow, payroll deductions are almost always the better choice from a tax perspective.

I went through this exact situation last year after getting married! It was frustrating at first, but the verification process ended up being pretty straightforward. I used the ID.me online option and was verified within 15 minutes. My refund was delayed by about 2 weeks compared to my typical timeline from previous years. Interestingly, my spouse and I both had to verify separately even though we filed jointly. Have you checked if your spouse also needs to verify but maybe the letter hasn't arrived yet?

Thanks everyone for the helpful responses! This really puts my mind at ease knowing it's selective rather than universal. @ThunderBolt7 your airport security analogy is perfect - that's exactly how I'll think about it now. @Keisha Jackson that's interesting about both spouses needing to verify separately. I'll keep an eye out for another letter for my spouse, though nothing has arrived yet. I think I'll go with the ID.me online verification since several of you mentioned it's much faster than scheduling an in-person appointment. Has anyone had issues with the online verification not working properly, or is it pretty reliable? I'd rather not have to fall back to the TAC appointment if I can avoid it.

just tried that taxr.ai thing someone mentioned above and WOW finally some actual answers! It showed me exactly why my refund was delayed (had a missing form) and what to do about it. Worth checking out fr

Same struggle here! Been waiting 8 weeks and "Where's My Refund" just says "still processing" 🙄 The IRS really needs to step up their game with giving us actual useful information instead of these vague status updates that tell us nothing

Anyone else notice that TurboTax mobile app doesn't support all the same forms as the desktop version? I tried using it last year for my side business and had to switch back to desktop for Schedule C. Has this been fixed in the newest version?

I'm in a similar situation - had to sell my laptop last year and now only have my iPhone and iPad. I've been using TurboTax Online (the web version) through Safari on my iPad for the past two years and it's worked great for my situation with mortgage interest, student loan interest, and charitable deductions. The key thing is to make sure you choose TurboTax Online, not try to download the desktop software. The online version has all the same features as the desktop version - I've compared my returns from when I had a laptop and the deductions found were identical. One tip: keep all your tax documents in your Photos app or a cloud service so you can easily access them while filling out forms. The iPad screen is plenty big enough to have the tax form open while referencing your documents. I actually prefer it now to the desktop experience!