1116 Foreign Tax Credit

1116

Form

OMB No. 1545-0121

Foreign Tax Credit

2008

(Individual, Estate, or Trust)
©

Department of the Treasury
Internal Revenue Service (99)

Attach to Form 1040, 1040NR, 1041, or 990-T.
© See separate instructions.

Name

Attachment
Sequence No.

19

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 beginning on page 3 of 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
b

Passive category income
General category income

f Resident of (name of country)

c
d

e

Section 901(j) income
Certain income re-sourced by treaty

Lump-sum distributions

©

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

g

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
page 13 of the instructions):

A

B

Total

C

(Add cols. A, B, and C.)

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 pages 13 and 14
of the 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 worksheet on
page 14 of the instructions)
b Other interest expense
5 Losses from foreign sources
6 Add lines 2, 3g, 4a, 4b, and 5
7 Subtract line 6 from line 1a. Enter the result here and on line 14, page 2

Country

Part II

A
B
C
8

©

6
7

Foreign Taxes Paid or Accrued (see page 14 of the instructions)

Credit is claimed
Foreign taxes paid or accrued
for taxes
In foreign currency
In U.S. dollars
(you must check one)
(h)
Paid
(n) Other
(r) Other
Taxes withheld at source on:
Taxes withheld at source on:
(i)
Accrued
foreign taxes
foreign taxes
paid or
paid or
(j) Date paid
(l) Rents
(p) Rents
(k) Dividends
(m) Interest
(o) Dividends
(q) Interest
accrued
accrued
or accrued
and royalties
and royalties

©

Add lines A through C, column (s). Enter the total here and on line 9, page 2

For Paperwork Reduction Act Notice, see page 19 of the instructions.

Cat. No. 11440U

(s) Total foreign
taxes paid or
accrued (add cols.
(o) through (r))

8
Form

1116

(2008)

Form 1116 (2008)

Part III
9

Page

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

Carryback or carryover (attach detailed computation)

10

11

Add lines 9 and 10

11

12

Reduction in foreign taxes (see pages 15 and 16 of the instructions)

12

13

Subtract line 12 from line 11. This is the total amount of foreign taxes available for credit (see
instructions)

14

15
16

17

2

Figuring the Credit

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 page 16 of the instructions)
Adjustments to line 14 (see pages 16 and 17 of the instructions)

14
15

Combine the amounts on lines 14 and 15. 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 17 through 21. However, if you are filing more than one Form
1116, you must complete line 19.)

16

Individuals: Enter the amount from Form 1040, line 41 (minus any
amount on Form 8914, line 2). If you are a nonresident alien, enter the
amount from Form 1040NR, line 38 (minus any amount on Form 8914,
line 2). Estates and trusts: Enter your taxable income without the
deduction for your exemption

17

13

Caution: If you figured your tax using the lower rates on qualified dividends or capital gains, see
page 17 of the instructions.
18
19

20
21

Divide line 16 by line 17. If line 16 is more than line 17, enter “1”
Individuals: Enter the amount from Form 1040, line 44. If you are a nonresident alien, enter the amount
from Form 1040NR, line 41.
Estates and trusts: Enter the amount from Form 1041, Schedule G, line 1a, or the total of Form
990-T, lines 36 and 37
Caution: If you are completing line 19 for separate category e (lump-sum distributions), see page 19
of the instructions.
Multiply line 19 by line 18 (maximum amount of credit)
Enter the smaller of line 13 or line 20. If this is the only Form 1116 you are filing, skip lines 22 through
26 and enter this amount on line 27. Otherwise, complete the appropriate line in Part IV (see
©
page 19 of the instructions)

Part IV
22
23
24
25
26
27
28
29

18

19

20

21

Summary of Credits From Separate Parts III (see page 19 of the instructions)

22
Credit for taxes on passive category income
23
Credit for taxes on general category income
24
Credit for taxes on certain income re-sourced by treaty
25
Credit for taxes on lump-sum distributions
Add lines 22 through 25
Enter the smaller of line 19 or line 26
Reduction of credit for international boycott operations. See instructions for line 12 beginning
on page 15
Subtract line 28 from line 27. This is your foreign tax credit. Enter here and on Form 1040, line 47;
©
Form 1040NR, line 44; Form 1041, Schedule G, line 2a; or Form 990-T, line 40a

26
27
28
29
Form

1116

(2008)