topic Form 1116 in Get your taxes done using TurboTax

Form 1116

MAC18 — Wed, 11 Feb 2026 08:58:11 GMT

I have foreign source dividend income and foreign taxes paid on this income included on a 1099. As a result, I am filing form 1116. I also have foreign passive source income reported to me on form k-3 (included with my k-1). This income includes dividend income and other income. However, no foreign taxes were paid on this k1/k-3 income. Do I still include this foreign source income from my k-1/k3 on line 1a of form 1116? Or does line 1a of form 1116 only include foreign source income where foreign taxes were withheld and paid?

Re: Form 1116

Mike9241 — Sat, 06 Apr 2024 20:55:30 GMT

it depends on the category. since your FTC comes from dividends which are passive the k-3 income would only benefit you if, I) you don't utilize the entire FTC from dividends and 2) it's also of the passive category,

Re: Form 1116

MAC18 — Sat, 06 Apr 2024 21:27:58 GMT

I am limited on using the full tax credit. Does that mean I can add the income from the k-3 to line 1a of Form 1116 even though I did not pay any foreign tax on that income. The income from the k3 is all passive and comes from dividends, interest, and Other Income (QEF from form 8621). Clearly, the more income I am able to put on line 1a of form 1116, the less I will be limited in using my foreign tax credit.

Re: Form 1116

MAC18 — Tue, 09 Apr 2024 14:01:38 GMT

I found my answer on page 17 of the IRS instructions for form 1116. The instructions say "You must include income even if it isn't taxable by that foreign country." So that is pretty clear. All foreign source income goes to line 1a of Form 1116 whether taxes were paid on it or not.