Important Reminders
Exemption from foreign tax credit limit. If your only foreign income is passive income and the total of all your foreign taxes shown on Forms 1099–DIV, Dividends and
Distributions, 1099–INT, Interest Income, and similar statements is not more than $300 ($600 if married filing jointly), you
can make an election not to be subject to the foreign tax credit limit. If you make this election, you can claim a foreign
tax credit without filing
Form 1116, Foreign Tax Credit (Individual, Estate, Trust, or Nonresident Alien Individual). See How To Figure the Credit.
Change of address. If your address changes from the address shown on your last return, use Form 8822, Change of Address, to notify the Internal Revenue
Service.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of
missing children
selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children
home by looking at the
photographs and calling 1–800–THE–LOST (1–800–843– 5678) if you recognize a child.
If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same
income, you may be able
to take either a credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes reduce your U.S.
taxable income. Taken as
a credit, foreign income taxes reduce your U.S. tax liability.
In most cases, it is to your advantage to take foreign income taxes as a tax credit. The major scope of this publication is
the foreign tax credit.
Unless you choose not to be subject to the foreign tax credit limit, you claim the credit by filing Form 1116 with your U.S.
income tax return. Two
examples with filled-in Forms 1116 are provided at the end of this publication.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
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Internal Revenue Service
Tax Forms and Publications
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1111 Constitution Ave. NW
Washington, DC 20224
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including the area code, in
your correspondence.
