Form detail
IRS Form 1116
Foreign Tax Credit (Individual, Estate, or Trust)
Country
United States
Revision year
2024
Methods
paper, efile
Updated
2026-05-20
Foreign Tax Credit (Individual, Estate, or Trust)
Computes the foreign tax credit for individuals, estates, and trusts.
Who must file: Individuals, estates, and trusts who paid or accrued foreign income tax and elect to take the foreign tax credit rather than the deduction.
Practical overview
Form 1116 separates the FTC computation by income category (passive, general, GILTI, branch, treaty-resourced) under Section 904(d). The credit is limited to the U.S. tax on the foreign-source income in that category. Excess FTC can be carried back one year and forward ten. The $300/$600 de-minimis election lets filers skip Form 1116 for small amounts of passive-category foreign tax.
Practical steps
- Categorize foreign income and foreign tax by Section 904(d) basket.
- Compute foreign-source taxable income within each category after allocation of deductions.
- Apply the FTC limitation formula per category.
- Track FTC carryback and carryforward by category.
Due-date notes
Attached to Form 1040 by April 15.
Timing: return-due-date
Extension reference: Form 4868
Penalty snapshot
No standalone penalty; failure to file may result in inability to claim the credit and loss of carryforward.
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- FormIRS 1040
- FormIRS 1040-NR
Cited by
- FormIRS 2555
Primary sources
- About Form 1116Verified 2026-05-20
- Instructions for Form 1116Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.