There are certain situations where you can claim the foreign tax credit without Form 1116 being required to be a part of your return.
If all of the following statements apply, then Form 1116 is not required to be filed in order for you to take the credit for foreign taxes paid:
- All of your foreign source gross income was passive category income (such as dividends or interest)
- All of the income and any taxes paid on it were reported to you on a qualified payee statement (such as Form 1099-DIV, Form 1099-INT, Schedule K-1)
- Your total creditable foreign taxes are not more than $300 (or $600 if Married Filing Joint)
