Election To Claim the Foreign Tax Credit Without Filing Form 1116
You may be able to claim the foreign tax credit without filing Form 1116. By making this election, the foreign tax credit limitation (lines 15 through 21 of the form) won't apply to you. This election is available only if you meet all of the following conditions.
• All of your foreign source gross income was “passive category income (which includes most interest and
dividends). See c. Passive Category Income, later form 1116 instruction - not reproduced here). However, for this purpose, passive income also includes (a) income subject to the special rule for High-taxed income described later, and (b) certain export financing interest.
• All the income and any foreign taxes paid on it were reported to you on a qualified payee statement. Qualified payee statements include Form 1099-DIV, Form 1099-INT, Schedule K-1 (Form 1041), Schedule K-1 (Form 1065), Schedule K-1 (Form 1120-S), or similar substitute statements.
• Your total creditable foreign taxes aren't more than $300 ($600 if married
filing a joint return).
If you make this election, the following rules apply.
• You can't carry over to or from any other year any foreign taxes paid or accrued in a tax year to which the
election applies (but carryovers to and from other years are unaffected). See the instructions for Line 10.
• You are still required to take into account the general rules for determining whether a tax is creditable
To make the election, just enter on the foreign tax credit line of your tax return (for example, Schedule 3 (Form
1040), Part I, line 1) the smaller of (a) your total foreign tax, or (b) your regular tax (for example, the total of Form 1040 or 1040-SR, line 16, and Schedule 2 (Form 1040), Part I, line 2).
how to do this in TurboTax
enter the FTC amount on the line for FTC for that 1099-DIV
do not link to form 1116
for country type use the drop down box and select various
