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Expatriate Tax returns - Form 1116 Tax Credit

Get a credit for taxes in US tax returns for taxes paid in a foreign country

Expatriate Tax Form 1116 needs to be filed to claim a Foreign Tax Credit by Expatriates, for taxes paid or accrued to a Foreign Country outside the United States during a tax year. Its filed along with Form 1040.

Your Foreign Tax Credit is reduced , if you are not reporting your foreign income in Form 1040 based on;

  1. Foreign Earned Income Exclusion
  2. Foreign Housing Exclusion
  3. Income from Puerto Rico, exempt from US Tax
  4. Possession Exclusion
  5. Extraterritorial Income Exclusion

However you can claim Foreign Tax Credit, without filing Expatriate Tax Form 1116 if you meet the following;

  1. Source of Foreign Income is Passive Income - Interests and Dividents
  2. Your Foreign Tax Credit to be claimed is not more than $300
  3. Your foreign income and taxes are reported on Form 1099 INT or Form 1099 DIV
By Tax Expert    February 20th, 2020