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awer23456
Returning Member

For form 1116, what do I put in "foreign taxes paid." My gross income was 30k, but I paid 0 in tax because I had tax credits.Do I put 0 or what I paid before tax credits?

 
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5 Replies

For form 1116, what do I put in "foreign taxes paid." My gross income was 30k, but I paid 0 in tax because I had tax credits.Do I put 0 or what I paid before tax credits?

what was the source of the foreign taxes?

awer23456
Returning Member

For form 1116, what do I put in "foreign taxes paid." My gross income was 30k, but I paid 0 in tax because I had tax credits.Do I put 0 or what I paid before tax credits?

It was Canadian income.

AmyC
Expert Alumni

For form 1116, what do I put in "foreign taxes paid." My gross income was 30k, but I paid 0 in tax because I had tax credits.Do I put 0 or what I paid before tax credits?

Actual foreign tax paid. If you didn't pay any foreign tax (thanks to the credits), you would not need the Form 1116 for that income.

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awer23456
Returning Member

For form 1116, what do I put in "foreign taxes paid." My gross income was 30k, but I paid 0 in tax because I had tax credits.Do I put 0 or what I paid before tax credits?

So would I end up getting taxed on it again when I report it to the US side of things? And don't I still need to report the gross income? 

KrisD15
Expert Alumni

For form 1116, what do I put in "foreign taxes paid." My gross income was 30k, but I paid 0 in tax because I had tax credits.Do I put 0 or what I paid before tax credits?

Yes, you need to report the income on your Form 1040 Federal tax return. 

Yes, that income will be subject to tax.

You paid no foreign tax, so you have no foreign tax credit. 

 

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