If foreign tax is under $300, is it OK to enter amount paid directly into Form 1040, or is it mandatory to calculate the credit in Form 1116 even if not attached.

[IRonMaN · Accepted solution]

If the form isn't required you can enter the amounts directly into the 1040.

[itonewbie]

As the IRMN says, there are conditions you must satisfy to claim FTC without filing F.1116:

• ALL of the taxpayer's foreign source gross income was passive income.

• All the income and any foreign taxes paid on it were reported on a qualified payee statement (e.g. 1099-DIV, 1099-INT, K-1).

• Total creditable foreign taxes aren't more than $300 ($600 MFJ).