Hello @Robbie V @pk @Anonymous_ . Thank you very much for your posts on this matter. They really helped me a lot to better understand how this “Certain income re-sourced by Treaty” category works in Form 1116
I am also a US Citizen, first year of Spanish tax residency, and I still have a couple of doubts that I hope you could help me to clarify.
These are my source of income: Income from the US (interests, dividends and US Social Security retirement), AND Income from Spain (dividends and Spanish Social Security retirement).
I am assuming that:
- One Form 1116 (say COPY 1) should be used for all my Spain source income, checking the box “Passive Category Income” on it, plus
- A separate Form 1116 (say COPY 2), checking the box “Certain income re-sourced by Treaty” for all my US source income. I also assume that a Statement should be attached to this COPY 2, providing a brief explanation of the US income included, and referring to the specific Spain Tax Treaty applicable provision used, which I believe is Art. 24, para. 3, correct?
Are my assumptions correct?
If so, I have another doubt: Is Social Security retirement income considered passive or general income. If passive, the above two Form 1116 would cover everything. If it is considered general income, should I split COPY 1 in two Form 1116 (one for general and one for passive) or just include Social Security income under Part I, line 1a or 1b (Anyhow, US income in COPY 2 couldn´t be split, since there is no possibility to split re-sourced income in further categories)
Thanks!
