Free 2008 Form 1116 - Federal

Form

1116

Foreign Tax Credit
(Individual, Estate, or Trust)
Attach to Form 1040, 1040NR, 1041, or 990-T. See separate instructions.

OMB No. 1545-0121

2008
Attachment Sequence No.

Department of the Treasury Internal Revenue Service (99)

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 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 c d Section 901(j) income Certain income re-sourced by treaty e Lump-sum distributions

f 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
g

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.) A B C

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):

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 3 Expenses definitely related to the income on line 1a (attach statement) 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

6 7

Part II Country

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

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

A B C 8

Add lines A through C, column (s). Enter the total here and on line 9, page 2
Cat. No. 11440U

8
Form

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

1116

(2008)

Form 1116 (2008)

Page

2

Part III
9

Figuring the Credit
9 10 11 12

Enter the amount from line 8. These are your total foreign taxes paid or accrued for the category of income checked above Part I Carryback or carryover (attach detailed computation) Add lines 9 and 10 Reduction in foreign taxes (see pages 15 and 16 of the instructions)

10 11 12 13 14

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

13

15 16

14 15

16

17

17

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

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20 21

20

21

Part IV
22 23 24 25 26 27 28 29

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)