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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.

Greta
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IRonMaN
Level 15

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

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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IRonMaN
Level 15

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

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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itonewbie
Level 15

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).

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Still an AllStar
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