!

CAUTION

Don’t adjust the amount of any foreign source capital gain distributions you elected to include on line 4g of AMT Form 4952.

Foreign qualified dividends. You must adjust your foreign source qualified dividends before you include those amounts on line 1a of the AMT Form 1116 if:

• Line 38 of Form 6251 is smaller than line 39, and

• Line 17 of Form 6251 is greater than zero. But you don’t need to make any adjustments if:

• You qualify for the adjustment exception under Qualified Dividends and Capital Gain Tax Worksheet (Individuals) or Adjustments to foreign qualified dividends under Schedule D Filers in the Instructions for Form 1116, and

• Line 17 of Form 6251 isn’t more than $239,100 ($119,550 if married filing separately (on Form 1040, 1040-SR, or 1040-NR)). Use your capital gains and losses as refigured for the AMT to determine whether your total amounts are less than the $20,000 threshold under the adjustment exception. If you qualify for the adjustment exception, your election also applies when you determine whether you must adjust your capital gain distributions or other capital gains or losses. It also applies to Step 4 .

To adjust your foreign source qualified dividends, multiply your foreign source qualified dividends in each separate category by 0.5357 if the foreign source qualified dividends are taxed at a rate of 15%, and by 0.7143 if they are taxed at a rate of 20%. Include the results on line 1a of the applicable AMT Form 1116.

You adjust your foreign source qualified dividends taxed at the 0% rate by not including them on line 1a. Amounts taxed at the 0% rate are on line 9 of the Qualified Dividends and Capital Gain Tax Worksheet or line 22 of the Schedule D Tax Worksheet.

Don’t adjust the amount of any foreign source