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To prevent the High-Tax Kickout (HTKO) treatment, do the following: Go to Credits > 1116-Foreign Tax Credit. Select Section 1 - Processing Options. In Line 6 - High tax kickout treatment, select the checkbox.
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.
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. Foreign Tax Credit | Internal Revenue Service irs.gov ? individuals ? international-taxpayers irs.gov ? individuals ? international-taxpayers
You'll use a Form 1116 explanation statement to show the foreign exchange conversion you used and the date on which it was determined. OANDA.com is a great source for reliable currency conversion rates.
If you are a shareholder of a mutual fund, or other regulated investment company (RIC), you may be able to claim the credit based on your share of foreign income taxes paid by the fund if it chooses to pass the credit on to its shareholders.