Form 1116 – Foreign Tax Credit (FTC)
Individuals fill out Form 1116 to claim a foreign tax credit. This form is used to claim a credit for foreign taxes paid on income that is also taxed in the United States. The foreign tax credit is intended to assist taxpayers in avoiding double taxation on the same income, once by the foreign country and once by the US.
You must have paid or accrued foreign taxes to a foreign country or U.S. possession in order to claim a foreign tax credit, and the taxes must have been imposed on you for income, war profits, or excess profits. You must also have foreign income that is eligible for the credit. To claim the credit, you must include Form 1116 with your tax return.
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