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

[Randy Haynes]

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!"

[BobKamman]

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. 

[ljsmith2]

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.

[Randy Haynes]

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

[BobKamman · Accepted solution]

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.  

[Randy Haynes]

Bob,

Thank you for your input. When the question popped up, I said "yes" and then wanted to go back and change that. I couldn't find a way to do that, and the program was only allowing $77 as a credit on Schedule 3. It was carrying the rest to future years.

I finally decided to just start the return over from scratch and answered "no" when that question popped up a second time. It is now allowing about $550 credit and I am getting no errors.

Your explanation makes sense with the numbers I am seeing. Thank you.