1116 Form – Fill Out and Use This PDF

The Form 1116, known as the Foreign Tax Credit form, is a document used by individuals, estates, or trusts to claim a credit for taxes paid to foreign countries. This form is attached to the taxpayer's main return, including Form 1040, 1040NR, 1041, or 990-T, ensuring that taxpayers are not taxed twice on the same income – once by the United States and again by the foreign country. To understand the eligibility requirements and to correctly fill out the form, consult the separate instructions provided by the Internal Revenue Service. Click the button below to start filling out Form 1116 and maximize your foreign tax credits.

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1116 Form PDF Details

When navigating the intricacies of taxes related to foreign income, individuals, estates, or trusts find the Form 1116, the Foreign Tax Credit, an indispensable tool. Initiated by the Department of the Treasury and managed by the Internal Revenue Service, this form serves as an attachment to a variety of tax returns including Form 1040, 1040NR, 1041, or 990-T. It is designed to prevent double taxation by allowing U.S. taxpayers to credit the amount of paid or accrued taxes to foreign countries against their U.S. tax liabilities. Each category of foreign income, whether it be passive, general, sourced by treaty, or others, requires a separate Form 1116, underscoring the form's comprehensive approach to covering the spectrum of foreign incomes. The form meticulously guides the taxpayer through the process of calculating taxable income from foreign sources, factoring in deductions, losses, and specifically designated expenses, before determining the amount of foreign taxes paid or accrued that is eligible for credit. This calculation requires detailed information about foreign income sources, deductions, and taxes, all of which must be reported in U.S. dollars, illustrating the form’s intention to streamline the process of crediting foreign taxes against U.S. tax obligations. Furthermore, adjustments and limitations are prominently addressed, ensuring that the foreign tax credit is accurately applied, thus reflecting the form’s critical role in the broader framework of international tax compliance and fiscal fairness.

Question	Answer
Form Name	1116 Form
Form Length	2 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	30 sec
Other names	40a, irs form 1116 fillable, sample of a 1116 form filled out, nonresident

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Form 1116	Foreign Tax Credit		OMB No. 1545-0121
Form 1116	(Individual, Estate, or Trust)		2010
			2010

Department of the Treasury	▶ Attach to Form 1040, 1040NR, 1041, or 990-T.		Attachment
Internal Revenue Service (99)	▶ See separate instructions.		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	Passive category income	c	Section 901(j) income	e Lump-sum distributions
b	General category income	d Certain income re-sourced by treaty

fResident 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
						(Add cols. A, B, and C.)
g	Enter the name of the foreign country or U.S.	A		B	C	(Add cols. A, B, and C.)
g	Enter the name of the foreign country or U.S.	A		B	C
	possession . . . . . . . . . . . ▶
1a	Gross income from sources within country shown
	above and of the type checked above (see
	instructions):

						1a

bCheck 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):

2Expenses definitely related to the income on line

1a (attach statement) . . . . . . . . .

3Pro rata share of other deductions not definitely related:

aCertain 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):

aHome 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

▶

Part II

Foreign Taxes Paid or Accrued (see instructions)

Credit is claimed

Foreign taxes paid or accrued

Country

for taxes

(you must check one)

Paid

(h)

In foreign currency

In U.S. dollars

(i)

Accrued

Taxes withheld at source on:

(n) Other

Taxes withheld at source on:

(r) Other

(s) Total foreign

foreign taxes

taxes paid or

(j) Date paid

(l) Rents

(p) Rents

(k) Dividends

(m) Interest

paid or

(o) Dividends

(q) Interest

paid or

accrued (add cols.

or accrued

and royalties

accrued

(o) through (r))

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

▶

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 11440U

Form 1116 (2010)

Form 1116 (2010)		Page 2

Part III	Figuring the Credit

9Enter 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 instructions)	12

13Subtract line 12 from line 11. This is the total amount of foreign taxes available for credit (see


	instructions)			. . . . . . . . .			13
14	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)			14
15	Adjustments to line 14 (see instructions)			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
	Caution: If you figured your tax using the lower rates on qualified dividends or capital gains, see
	instructions.
18	Divide line 16 by line 17. If line 16 is more than line 17, enter “1” . .			. . . . . . . . .			18
19	Individuals: Enter the amount from Form 1040, line 44. If you are a nonresident alien, enter the
	amount from Form 1040NR, line 42. Estates and trusts: Enter the amount from Form 1041,
	Schedule G, line 1a, or the total of Form 990-T, lines 36 and 37 . .			. . . . . . . . .			19
	Caution: If you are completing line 19 for separate category E (lump-sum distributions), see
	instructions.
20	Multiply line 19 by line 18 (maximum amount of credit)			. . . . . . . . .			20
21	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 instructions)			. . . . . . .	.	. ▶	21
Part IV		Summary of Credits From Separate Parts III (see instructions)
22	Credit for taxes on passive category income			22
23	Credit for taxes on general category income			23
24	Credit for taxes on certain income re-sourced by treaty . . . .			24
25	Credit for taxes on lump-sum distributions			25
26	Add lines 22 through 25			. . . . . . . . .			26
27	Enter the smaller of line 19 or line 26			. . . . . . . . .			27
28	Reduction of credit for international boycott operations. See instructions for line 12						28
29	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 . . . .				.	. ▶	29

Form 1116 (2010)

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3. The following section is focused on Part III Figuring the Credit, Enter the amount from line These, Carryback or carryover attach, Add lines and , Reduction in foreign taxes see, Subtract line from line This is, Enter the amount from line This, Combine the amounts on lines and , Individuals Enter the amount from, and Caution If you figured your tax - fill out all of these blank fields.

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1116 Form – Fill Out and Use This PDF

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