Get 2013 Irs Form 1116

What is General Limited Income (Form 1116)? General limited income is income that is not passive income, Section 901(j) income, or income resourced by treaty or Lump-Sum distribution income. General category income may include: Wages, salary, and overseas allowances of an individual as an employee.

For each fund that paid foreign taxes, report the amount from Box 7 of your Form 1099-DIV on Form 1040. You do not have to fill out Form 1116, Foreign Tax Credit (Individual, Estate, or Trust).

Generally, to claim the credit, taxpayers are required to file Form 1116. Taxpayers do not have to file Form 1116 if they meet certain requirements and can elect to claim the foreign tax credit directly on Form 1040, Schedule 3. ... A separate Form 1116 must be completed for each category of income.

Passive income includes interest, dividend, royalty and annuity income for which you received a 1099 form. ... General limitation includes your wages, salary and any highly taxed passive income. Income becomes "highly taxed" for IRS purposes when the foreign country's tax rate is higher than the U.S. rate.

To determine your share of foreign source income received from a fund, you can use one of two methods: Method 1: To calculate your foreign source income, multiply the Total Ordinary Dividends (1a) amount reported for that fund by the foreign source income percentage shown for that fund on the following pages.

All of your foreign source gross income was "passive category income" (which includes most interest and dividends). ... All the income and any foreign taxes paid on it were reported to you on a qualified payee statement.

Forms you'll need If all the income and any foreign taxes you paid on that income were reported on a qualified payee statement only, such as a Form 1099-INT, 1099-DIV or Schedule K-1. If your total creditable foreign taxes aren't more than $300 (or $600 if you're married and filing jointly)

General category income consists of income earned in a foreign country that an individual does not exclude, or excludes only part of, under the foreign earned income exclusion.

More In Forms and InstructionsFile Form 1116 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.