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  • 2003 Form 1116

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Y one box on each Form 1116. Report all amounts in U.S. dollars except where specified in Part II below. a b Passive income High withholding tax interest c Financial services income k Resident of (name of country) d e f Shipping income Dividends from a DISC or former DISC Certain distributions from a foreign sales corporation (FSC) or former FSC g h i j Lump-sum distributions Section 901(j) income Certain income re-sourced by treaty General limitation income Note: If you paid taxes.

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File Form 1116, Foreign Tax Credit, to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession. Corporations file Form 1118, Foreign Tax Credit—Corporations, to claim a foreign tax credit.

While several situations may require a Form 1116 explanation statement to the IRS, the most common use is to explain your Foreign Tax Credit calculation. Any expat who wants to claim this tax credit must submit a statement that shows how the amount was calculated for Part II of Form 1116.

File Form 1116 to claim the foreign tax credit if the election, earlier, doesn't apply and: You are an individual, estate, or trust; and. You paid or accrued certain foreign taxes to a foreign country or U.S. possession.

Use Form 1116 to claim the Foreign Tax Credit (FTC) and subtract the taxes they paid to another country from whatever they owe the IRS. Use Form 2555 to claim the Foreign Earned-Income Exclusion (FEIE), which allows those who qualify to exclude some or all of their foreign-earned income from their U.S. taxes.

Basically, an explanation statement is simply the reason that you are amending your return.

Taxpayers who paid taxes to a foreign country or U.S. possession may be able to take a nonrefundable foreign tax credit. Generally, to claim the credit, taxpayers are required to file Form 1116.

The foreign tax deduction allows American taxpayers to reduce their taxable income by a portion of the amount of income tax paid to foreign governments. The goal is to prevent American citizens from being subject to double taxation for the same income.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232