Form 1116 Foreign Tax Credit

Version A, Cycle 3

Form

1116

Foreign Tax Credit

OMB No. 1545-0121

2010 2011

(Individual, Estate, or Trust)
a

Department of the Treasury
Internal Revenue Service (99)

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

Attachment
Sequence No. 19

Identifying number as shown on page 1 of your tax return

Name

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.
Passive category income

a
b

c
d

General category income

Lump-sum distributions

e

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

f Resident of (name of country) a
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
g

Taxable Income or Loss From Sources Outside the United States (for Category Checked Above)

Enter the name of the foreign country or U.S.
possession . . . . . . . . . . . a
1a

A

Foreign Country or U.S. Possession
B
C

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

Gross income from sources within country shown
above and of the type checked above (see page
13 of the 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) . . a

DRAFT AS OF
August 4, 2010

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
b
c
d
e
f
g

4
a
b
5
6
7

Certain itemized deductions or standard deduction
(see instructions) . . . . . . . . . . .
Other deductions (attach statement) . . . . .
Add lines 3a and 3b . . . . . . . . . .
Gross foreign source income (see instructions) .
Gross income from all sources (see instructions) .
Divide line 3d by line 3e (see instructions) . . .
Multiply line 3c by line 3f . . . . . . . .
Pro rata share of interest expense (see instructions):

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

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a

6
7

Country

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

A
B
C
8

Credit is claimed
for taxes
(you must check one)
Paid
(h)
(i)

Accrued

(j) Date paid
or accrued

15

Foreign taxes paid or accrued
In foreign currency
Taxes withheld at source on:
(k) Dividends

(l) Rents
and royalties

(n) Other
foreign taxes
paid or
(m) Interest
accrued

In U.S. dollars

(o) Dividends

(p) Rents
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.

(r) Other
foreign taxes
paid or
accrued

Taxes withheld at source on:

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(q) Interest

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Cat. No. 11440U

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a

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

8
Form 1116 (2010)

2011

Version A, Cycle 3

2011
Form 1116 (2010)

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

Carryback or carryover (attach detailed computation)

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10

11

Add lines 9 and 10 .

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11

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13 High-tax kickout reclassification

12

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

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

1514

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) .

15

1615
1716

14
15

15
16

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

17

Individuals: Enter the amount from Form 1040, line 41, or Form
1040NR, line 39. Estates and trusts: Enter your taxable income
without the deduction for your exemption . . . . . . . .

17

18

14

13

16

18

22

1817

)

13

Combine lines 11, 12, and 13.

14 13

(

12

20

1918 17
2019

2120
2221

14

27

Caution: If you figured your tax using the lower rates on qualified dividends or capital gains, see
page 17 of the instructions.
18
Divide line 16 by line 18
17. If line 16 is more than line 17, enter “1” . . . . . . . . . . .
Individuals: See instructions. Estates and trusts: Enter the amount from Form 1041, Schedule G,
line 1a, or the total of Form 990-T, lines 36 and 37 . . . . . . . . . . . . . . .

DRAFT AS OF
August 4, 2010

Caution: If you are completing line 19 for separate category e (lump-sum distributions), see page 19
20
of the instructions.
19
Multiply line 19 by line 18 (maximum amount of credit) . 21. . . . . . . . . . . . . 23
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) . . . . 28 . . . . . . . . . . . . . . . . . a

19

18

20

19

21

20

22

21

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

2322
2423
2524
26 25
27 26
28 27
2928

Credit for taxes on passive category income . . .
Credit for taxes on general category income . . .
Credit for taxes on certain income re-sourced by treaty
Credit for taxes on lump-sum distributions . . . .
Add lines 22 through 25 26 . . . . . . . . .
27
Enter the smaller of line 19 or line 26 . . . . .

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25
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25
26
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26
27

27
28

28

29

20

23

3029

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Reduction of credit for international boycott operations. See instructions for line 12 beginning on
page 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29

28

Subtract line 28 from line 27. This is your foreign tax credit. Enter here and on Form 1040, line 47;
Form 1040NR, line 45; Form 1041, Schedule G, line 2a; or Form 990-T, line 40a . . . . . . a

29

30
Form

1116

(2010)

2011