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    Foreign Tax Credit: (Individual, Estate, or Trust)

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    Tanasha Flanders
    This 3 sentence summary provides the high level information from the foreign tax credit form: The form is used to claim foreign tax credits and contains sections to report taxable foreign source income and foreign taxes paid by category of income, figure the maximum allowable foreign tax credit, and calculate the actual foreign tax credit to claim. Taxpayers must fill out a separate form for each category of foreign source income and attach the completed forms to their individual, estate, or trust tax return.

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    Foreign Tax Credit: (Individual, Estate, or Trust)

    Uploaded by

    Tanasha Flanders
    54 views2 pages
    This 3 sentence summary provides the high level information from the foreign tax credit form: The form is used to claim foreign tax credits and contains sections to report taxable foreign source income and foreign taxes paid by category of income, figure the maximum allowable foreign tax credit, and calculate the actual foreign tax credit to claim. Taxpayers must fill out a separate form for each category of foreign source income and attach the completed forms to their individual, estate, or trust tax return.

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    This 3 sentence summary provides the high level information from the foreign tax credit form: The form is used to claim foreign tax credits and contains sections to report taxable foreign source income and foreign taxes paid by category of income, figure the maximum allowable foreign tax credit, and calculate the actual foreign tax credit to claim. Taxpayers must fill out a separate form for each category of foreign source income and attach the completed forms to their individual, estate, or trust tax return.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    54 views2 pages

    Foreign Tax Credit: (Individual, Estate, or Trust)

    Uploaded by

    Tanasha Flanders
    This 3 sentence summary provides the high level information from the foreign tax credit form: The form is used to claim foreign tax credits and contains sections to report taxable foreign source income and foreign taxes paid by category of income, figure the maximum allowable foreign tax credit, and calculate the actual foreign tax credit to claim. Taxpayers must fill out a separate form for each category of foreign source income and attach the completed forms to their individual, estate, or trust tax return.

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    of 2

    1116 Foreign Tax Credit OMB No.

    1545-0121

    2022
    Form (Individual, Estate, or Trust)
    Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, 1041, or 990-T. Attachment
    Internal Revenue Service Go to www.irs.gov/Form1116 for instructions and the latest information. Sequence No. 19
    Name Identifying number as shown on page 1 of your tax return

    Use a separate Form 1116 for each category of income listed below. See Categories of Income in the instructions. Check only one box on each Form
    1116. Report all amounts in U.S. dollars except where specified in Part II below.

    a Section 951A category income c Passive category income e Section 901(j) income g Lump-sum distributions
    b Foreign branch category income d General category income f Certain income re-sourced by treaty

    h Resident of (name of country)


    Note: If you paid taxes to only one foreign country or U.S. possession, use column A in Part I and line A in Part II. If you paid taxes to
    more than one foreign country or U.S. possession, use a separate column and line for each country or possession.
    Part I Taxable Income or Loss From Sources Outside the United States (for category checked above)
    Foreign Country or U.S. Possession Total
    A B C (Add cols. A, B, and C.)
    i Enter the name of the foreign country or U.S.
    possession . . . . . . . . . . . .
    1a Gross income from sources within country shown
    above and of the type checked above (see
    instructions):

    1a
    b Check if line 1a is compensation for personal
    services as an employee, your total
    compensation from all sources is $250,000 or
    more, and you used an alternative basis to
    determine its source. See instructions . . .
    Deductions and losses (Caution: See instructions.):
    2 Expenses definitely related to the income on line
    1a (attach statement) . . . . . . . . .
    3 Pro rata share of other deductions not definitely
    related:
    a Certain itemized deductions or standard deduction
    (see instructions) . . . . . . . . . . .
    b Other deductions (attach statement) . . . . .
    c Add lines 3a and 3b . . . . . . . . . .
    d Gross foreign source income (see instructions) .
    e Gross income from all sources (see instructions) .
    f Divide line 3d by line 3e (see instructions) . . .
    g Multiply line 3c by line 3f . . . . . . . .
    4 Pro rata share of interest expense (see instructions):
    a Home mortgage interest (use the Worksheet for
    Home Mortgage Interest in the instructions) . .
    b Other interest expense . . . . . . . . .
    5 Losses from foreign sources . . . . . . .
    6 Add lines 2, 3g, 4a, 4b, and 5 . . . . . . . 6
    7 Subtract line 6 from line 1a. Enter the result here and on line 15, page 2 . . . . . . . . . . . 7
    Part II Foreign Taxes Paid or Accrued (see instructions)
    Credit is claimed
    for taxes Foreign taxes paid or accrued
    (you must check one)
    Country

    (j) Paid In foreign currency In U.S. dollars


    (k) Accrued Taxes withheld at source on: (p) Other Taxes withheld at source on: (t) Other (u) Total foreign
    foreign taxes foreign taxes taxes paid or
    (l) Date paid (n) Rents paid or (r) Rents paid or accrued (add cols.
    (m) Dividends (o) Interest (q) Dividends (s) Interest
    or accrued and royalties accrued and royalties accrued (q) through (t))
    A
    B
    C
    8 Add lines A through C, column (u). Enter the total here and on line 9, page 2 . . . . . . . . . 8
    For Paperwork Reduction Act Notice, see instructions. Cat. No. 11440U Form 1116 (2022)
    Form 1116 (2022) Page 2
    Part III Figuring the Credit
    9 Enter the amount from line 8. These are your total foreign taxes paid
    or accrued for the category of income checked above Part I . . 9
    10 Enter the sum of any carryover of foreign taxes (from Schedule B, line 3,
    column (xiv)) plus any carrybacks to the current tax year . . . . 10
    (If your income was section 951A category income (box a above Part I),
    leave line 10 blank.)
    11 Add lines 9 and 10 . . . . . . . . . . . . . . . 11

    12 Reduction in foreign taxes (see instructions) . . . . . . . 12 ( )

    13 Taxes reclassified under high tax kickout (see instructions) . . 13

    14 Combine lines 11, 12, and 13. This is the total amount of foreign taxes available for credit . . . 14
    15 Enter the amount from line 7. This is your taxable income or (loss) from
    sources outside the United States (before adjustments) for the category
    of income checked above Part I. See instructions . . . . . . 15
    16 Adjustments to line 15 (see instructions) . . . . . . . . 16

    17 Combine the amounts on lines 15 and 16. This is your net foreign
    source taxable income. (If the result is zero or less, you have no
    foreign tax credit for the category of income you checked above
    Part I. Skip lines 18 through 24. However, if you are filing more than
    one Form 1116, you must complete line 20.) . . . . . . . 17
    18 Individuals: Enter the amount from line 15 of your Form 1040,
    1040-SR, or 1040-NR. Estates and trusts: Enter your taxable
    income without the deduction for your exemption . . . . . 18
    Caution: If you figured your tax using the lower rates on qualified dividends or capital gains, see
    instructions.
    19 Divide line 17 by line 18. If line 17 is more than line 18, enter “1” . . . . . . . . . . . 19
    20 Individuals: Enter the total of Form 1040, 1040-SR, or 1040-NR, line 16, and Schedule 2 (Form
    1040), line 2. Estates and trusts: Enter the amount from Form 1041, Schedule G, line 1a; or the
    total of Form 990-T, Part II, lines 2, 3, 4, and 6. Foreign estates and trusts should enter the amount
    from Form 1040-NR, line 16. See instructions . . . . . . . . . . . . . . . . . 20
    Caution: If you are completing line 20 for separate category g (lump-sum distributions), or, if you file
    Form 8978, Partner’s Additional Reporting Year Tax, see instructions.

    21 Multiply line 20 by line 19 (maximum amount of credit) . . . . . . . . . . . . . . 21

    22 Increase in limitation (section 960(c)) . . . . . . . . . . . . . . . . . . . 22

    23 Add lines 21 and 22 . . . . . . . . . . . . . . . . . . . . . . . . . 23


    24 Enter the smaller of line 14 or line 23. If this is the only Form 1116 you are filing, skip lines 25
    through 32 and enter this amount on line 33. Otherwise, complete the appropriate line in Part IV. See
    instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
    Part IV Summary of Credits From Separate Parts III (see instructions)
    25 Credit for taxes on section 951A category income . . . . . 25
    26 Credit for taxes on foreign branch category income . . . . . 26
    27 Credit for taxes on passive category income . . . . . . . 27
    28 Credit for taxes on general category income . . . . . . . 28
    29 Credit for taxes on section 901(j) income . . . . . . . . 29
    30 Credit for taxes on certain income re-sourced by treaty . . . . 30
    31 Credit for taxes on lump-sum distributions . . . . . . . . 31
    32 Add lines 25 through 31 . . . . . . . . . . . . . . . . . . . . . . . 32
    33 Enter the smaller of line 20 or line 32 . . . . . . . . . . . . . . . . . . . 33
    34 Reduction of credit for international boycott operations. See instructions for line 12 . . . . . 34
    35 Subtract line 34 from line 33. This is your foreign tax credit. Enter here and on Schedule 3 (Form
    1040), line 1; Form 1041, Schedule G, line 2a; or Form 990-T, Part III, line 1a . . . . . . . 35
    Form 1116 (2022)

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